Editor's note: This story was updated on Sept. 1 with information about Denise Paulonis' next position.
Sprouts Farmers Market announced Tuesday that Chief Financial Officer Denise Paulonis is resigning effective Sept. 24.
In her place, Lawrence "Chip" Molloy, who serves on the company's board of directors will take the CFO position. Molloy, 60, served as interim CFO from June 2019 until Feb. 21, 2020, when Paulonis began her employment at Sprouts.
"There is no better successor to oversee our financial function than Chip," Jack Sinclair, chief executive officer of Sprouts Farmers Market, said in a released statement. "Chip's extensive knowledge of all aspects of our business and strategy and long-tenured executive experience makes him ideally suited to lead our finance team as we execute on our strategy."
"I am thrilled to be joining Jack and the Sprouts leadership team," Molloy said in the statement. "I have proudly served Sprouts for the past eight years, and I couldn't be more excited about our current growth trajectory as we continue to implement our strategic priorities to deliver value to our stockholders."
Molloy will resign from the board of directors when he becomes the chief financial officer. Sprouts Farmers Market agreed to pay Molloy a base salary of $875,000; a signing bonus of $500,000; a short-term incentive bonus potential of $875,000; stock options; and the opportunity to participate in the company's health and 401(k) plans.
He most recently worked as chief financial officer of Pathway Vet Alliance from May to August. He has served on Sprouts' board of directors since January 2013.denise-
Paulonis, 48, joined Sprouts Farmers Market after serving as executive vice president and CFO of The Michaels Companies, the arts-and-crafts specialty retailer. Apollo Global Management purchased Michaels in March and took the company private.
She has been named the next president and CEO of Sally Beauty Holdings Inc., effective Oct. 1. She has served on that company's board of directors since 2018 and chairs the board's audit committee.
Sally Beauty Holding's current president and CEO, Chris Brickman, said net sales increased 44.7% to $1 billion in Q3, which ended June 30. For the first three quarters of the fiscal year, Sally Beauty Holdings' net sales totaled $2.9 million with gross profit of $1.4 million. While the company was greatly affected by pandemic-related store closures in 2020, net sales for that fiscal year were $3.51 billion.
Robert McMaster, the company's chairman, said in a press release, "As the company emerges from the hard work of its transformation, both the board and Chris agree that now is the right time for a change in leadership.
"We unanimously believe Denise is the right leader to drive the next stage of the company’s growth. With her experience and proven commitment to the Company, we believe Denise will provide fresh perspectives and valuable insights in order to take our brands and our company into the future."
Paulonis said, in the same released statement, "As a current board member, I know firsthand what a driven team this is, and I could not be more excited to hit the ground running. We have an amazing opportunity to propel the company into its next chapter, solidifying our place as a leading beauty provider and moving forward as a dynamic, modern, inclusive and profitable business."
With the addition of Paulonis, Sally Beauty Holdings will have an four women in its C-suite: Marlo Cormier is chief financial officer; Mary Beth Edwards is chief information officer and chief transformation officer; and Pamela Kohn is chief merchandising officer.
Paulonis has been the only female C-suite executive at Sprouts since she was hired. Two women serve on the eight-member board of directors. For fiscal 2020, Paulonis received total compensation of $3.73 million; she also received restricted stock valued at $750,000 to compensate her for pay from Michaels that she relinquished to join Sprouts, according to the Proxy Statement for the 2021 Annual Meeting of Stockholders.