2014 FIN – Fastenal’s Kierlin Retiring: Stock Grew From $9k to $5 Million
Fastenal founders Bob Kierlin, Jack Remick and Van McConnon stand outside the first Fastenal store. Courtesy Fastenal
Bob Kierlin
A sampling of Fastenal stories in the Fastener History section of GlobalFastenerNews.com:
1989 FIN – Fastenal Expanding in Cities With 20,000 to 70,000 Populations
Fastenal said there are between 500 and 700 such potential U.S. markets.
1997 FIN – Who’s the Cheapest CEO in America?
Inc. magazine reporter spent two months developing a list of finalists.
2002 FIN – Oberton Succeeds Kierlin as Fastenal CEO
Fresh out of college and needing a job, Oberton had a friend who worked for Fastenal.
Fastenal co-founders Bob Kierlin and Steve Slaggie are retiring.
Since they founded Fastenal in 1967 the corporation has grown from a 1,000 sq. ft. store in Winona, Minnesota, to more than 2,700 stores in 20 countries with 18,000 employees.
The price of 1,000 shares of Fastenal stock purchased in the 1987 IPO was $9,000, and having split seven times, are now 96,000 shares worth nearly $5 million – plus cumulative dividends of roughly $500,000.
In 1987 annual sales were $20 million. Today sales total $15 million per day.
Kierlin – once named the “Cheapest CEO in America” by Inc. magazine (see FIN’s Fastener History 1997) – retired as CEO in 2002. He was a Minnesota state senator from 1999 to 2007.
Kierlin, 74, was Fastenal’s president until 2001 and CEO until 2002; and Slaggie was the company’s treasurer, insurance risk manager, and investor relations director from 1987 to 1996.
Both men are retiring in accordance to Fastenal’s director age-limitation policy.
Two of the other three company founders retired from the board in recent years: Jack Remick in 2007, and Van McConnon in 2009. The fifth founder, Mike Gostomski, is slated to retire in 2015.
Kierlin’s original vision for Fastenal was dispensing fasteners out of franchised vending machines. After being turned down by at least 30 potential investors, he finally convinced four friends – Remick, McConnon, Slaggie, and Gostomski – to invest.
But there was little demand for fastener sizes and quantities that could be vended and the idea was tabled and instead a store-based model began. Fastenal opened its first branch in Rochester, MN, in 1971 and stored inventory in rented garages around Winona. Fastenal next began adding branches throughout the region.
As Fastenal grew, hierarchies were leveled; promotions came from within; and decisions, purchasing and pricing were decentralized based on local market needs.
Fastenal needed funding to achieve a 30% annual growth rate and in 1987 held the IPO. It included 100,000 shares for employee purchase.
Fastenal sells industrial and construction supplies including threaded fasteners; tools; metal cutting tool blades and abrasives; fluid transfer components and accessories for hydraulic and pneumatic power; material handling; storage and packaging products; janitorial, chemical and paint products; electrical supplies; welding supplies; safety supplies; metals, alloys and materials; and office supplies. Web: Fastenal.com
Fastenal Summarized in FIN Stock Review
A summary of each year of Fastenal’s corporate performance since 2008 is available to FIN Subscribers by clicking on the FIN Stock Review section of GlobalFastenerNews.com.
Nonsubscribers may buy the summaries on Article Store.
2014 FIN ? Oberton, 56, to Leave as Fastenal CEO
Willard D. Oberton announced he will resign as CEO of Fastenal Company at the end of 2014 and the company’s board of directors promoted president Leland J. Hein to CEO.
Hein will continue as president until the board chooses a successor.
Hein, 53, started with Fastenal in 1985 and held various sales and managerial roles, including as a general and district manager, regional vice president, executive vice president for sales. He was named president in 2012.
Oberton, 56, will continue as board chairman and maintain an office at Fastenal’s Winona, MN, headquarters.
Earlier this year Fastenal co-founders Bob Kierlin and Steve Slaggie retired (see Fastener History section of GlobalFastenerNews.com).
Just this month, Oberton was named as one of the 100 best-performing CEOs in the world by Harvard Business Review. He ranked lowest for CEO compensation, with a base salary of $794,761 – the only executive on the list with base pay below $1 million.
Fastenal sells industrial and construction supplies including threaded fasteners; tools; metal cutting tool blades and abrasives; fluid transfer components and accessories for hydraulic and pneumatic power; material handling; storage and packaging products; janitorial, chemical and paint products; electrical supplies; welding supplies; safety supplies; metals, alloys and materials; and office supplies.
Fastenal operates approximately 2,700 stores primarily in North America, plus in Asia, Europe, Central and South America and Africa. Fastenal has 11 U.S. distribution centers in Minnesota, Indiana, Ohio, Pennsylvania, Texas, Georgia, Washington, California, Utah, North Carolina, Kansas, and three outside the U.S.: Ontario, Canada; Alberta, Canada; and Nuevo Leon, Mexico.
For more on Fastenal management, click on the Fastener History section of GlobalFastenerNews.com:
2014 FIN – Fastenal’s Kierlin Retiring: Stock Grew from $9,000 to $5,000,000 During His Tenure
Fastenal co-founders Bob Kierlin and Steve Slaggie are retiring. Since they founded Fastenal in 1967 the corporation has grown from a 1,000 sq. ft. store in Winona, Minnesota, to more than 2,700 stores in 20 countries with 18,000 employees.
2010 FIN – Fastenal to Buy Holo-Krome from Danaher; No Cuts Expected
2002 FIN – Oberton Succeeds Kierlin as Fastenal CEO
1989 FIN – Fastenal Expanding in Cities With 20,000 to 70,000 Populations
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