8-K: Dave & Buster's Appoints Darin Harper as New Chief Financial Officer

Dave & Buster's has announced the appointment of Darin Harper as its new Chief Financial Officer, effective June 17, 2024, succeeding Michael Quartieri.

Summary

• Dave & Buster's has appointed Darin Harper as its new Chief Financial Officer, effective June 17, 2024.
• Mr. Harper will replace Michael Quartieri, who will remain in his role until June 16, 2024, to ensure a smooth transition.
• Darin Harper previously served as CFO of World Choice Investments, LLC, and held executive roles at Main Event Entertainment prior to its acquisition by Dave & Buster's.
• Mr. Harper's compensation includes an annual base salary of $475,000, an 80% target bonus, and participation in the company's long-term incentive plan.
• He will also receive a one-time long-term and performance grant of $1,000,000 in stock options, $1,000,000 in restricted stock units, $2,000,000 in performance share units, and $525,000 in stock options conditioned upon a purchase of company stock.

Sentiment

Score: 8

Explanation: The appointment of a new CFO with a strong background and a clear transition plan is a positive development for the company. The compensation package is also a positive sign of the company's commitment to attracting top talent.

Positives

• Darin Harper has extensive experience in the entertainment and hospitality sectors, including previous roles at Main Event, which is now part of Dave & Buster's.
• His previous experience with Main Event and Ardent Leisure provides him with a deep understanding of the company's operations and the broader industry.
• The transition plan includes a period where the current CFO will remain to ensure a smooth handover of responsibilities.
• The compensation package for Mr. Harper includes a significant long-term incentive, aligning his interests with the company's long-term performance.

Risks

• The transition of CFOs could pose a short-term risk if not managed effectively, although the overlap period is designed to mitigate this.
• The company is relying on Mr. Harper's experience to drive growth, and any challenges in his performance could impact the company's financial strategy.

Future Outlook

The company anticipates that Darin Harper's experience and leadership will drive growth and enhance shareholder value in 2024 and beyond.

Management Comments

• Chris Morris, Chief Executive Officer of Dave & Buster's, stated that Darin Harper was the obvious choice after an extensive national search.
• Chris Morris expressed confidence that Darin Harper is the perfect individual to drive the company's finance team to new heights.
• Darin Harper stated that the company's strategic plan presents a tremendous amount of tangible upside that he looks forward to achieving.

Industry Context

This appointment reflects a strategic move to strengthen the company's financial leadership as it continues to expand its entertainment and dining venues. The appointment of an experienced executive with a background in the out-of-home entertainment space is consistent with industry trends focused on growth and operational efficiency.

Comparison to Industry Standards

• The appointment of a CFO with experience at companies like Main Event, On The Border, and Chuck E. Cheese's is common in the entertainment and hospitality industry, where financial expertise in multi-site operations is highly valued.
• The compensation package, including a base salary, bonus, and long-term incentives, is in line with industry standards for executive-level positions at publicly traded companies.
• The transition plan, with the outgoing CFO staying on to ensure a smooth handover, is a best practice in corporate governance to minimize disruption.

Management Changes

Stakeholder Impact

• Shareholders may view the appointment of an experienced CFO as a positive step towards achieving the company's growth objectives.
• Employees may experience a change in leadership within the finance department, but the transition plan aims to minimize disruption.
• Customers are unlikely to be directly impacted by this change in executive leadership.

Next Steps

• Darin Harper will officially join the company on June 17, 2024.
• Michael Quartieri will continue to serve as CFO until June 16, 2024, to ensure a smooth transition.
• The company will file the full text of Mr. Harper's employment agreement as an exhibit to a subsequent periodic report with the SEC.

Key Dates

Keywords

Chief Financial Officer, CFO, Darin Harper, Michael Quartieri, executive appointment, financial leadership, Dave & Buster's, Main Event, compensation, stock options