Copart $CPRT new CEO pay package looks on the surface like textbook alignment, but there are some caveats. The structure is basically... - Jay Adair takes a $1 salary, no bonus and no new equity for 10 years. - He gets instead one 20M-share option in four tranches, with strikes at $26.27, $35.03, $43.78 and $52.54. The option has a 5-year cliff, a clawback if he leaves early, and his gains are locked up until year 10. So basically... - Stock flat → he earns $0. - Stock 2x → he earns ~$263M. My "concern" is the timing of the option issue, which evidently impacts the existing holders more than it does the recent holders. Jay Adair came back as CEO on July 31, with the stock near multi-year lows around $28, down from ~$52 in mid-2025. The strikes are anchored to the depressed price in which he (opportunistically?) became CEO. This ultimately means that... - Tranche 1 pays on any rebound, so many shareholders might still be underwater while he makes millions (this has no simple solution as setting the bar at ATH would also not be fair) - The “ambitious” top strike of $52.54 is roughly where the stock already traded in 2025... - “Doubling the stock” mostly means getting back to where it was without any new value creation - Over 10 years, a 2x is roughly ~7% a year Now, a founder-family CEO taking $1 and betting everything on the stock is rare and definitely better than nothing, but the design matters too and reality is more nuanced than it appears. As designed, Jay Adair could earn hundreds of millions simply by returning Copart to where it was before he came back. Still subject to shareholder approval!

1/ I went down a rabbit hole comparing Rollins ($ROL) and Verisure ($VSURE). Pest control and home alarms have more in common than you might think and Rollins is typically considered the better biz...but after looking at both, I'm less convinced Let me explain why 👇

1/ ASML $ASML had another great quarter (to nobody’s surprise). €11.7bn in sales and 57.5% gross margin. I recalculated my 2028 numbers with the new information and I'm significantly ahead of the company's 2030 guide (two years early) Some thoughts 👇

1/ Rollins has been one of the great compounders of the last 30 years but the stock is down ~50% in 12 months. Most people now ask themselves if its cheap. I think the better question is one almost nobody asked before: what does it cost Rollins to stand still?

One pager on $TBBB A darn good business