LKQ Corp: CEO change and preliminary Q3 2026 results

What happened

• LKQ Corporation announced that Justin L. Jude ceased to serve as the company’s president and chief executive officer and resigned from the board, effective Oct 23, 2026, and that the board appointed Salvatore A. Abbate to succeed him as president and chief executive officer and as a board member, effective Dec 15, 2026.
• The company also issued a press release with preliminary financial results for the fiscal quarter ended Sep 30, 2026 and withdrew its full-year 2026 guidance (most recently updated on Jul 30, 2026). The board established an interim Office of the Chief Executive Officer effective Oct 23, 2026.

Key details

• Mr. Abbate’s offer letter: annual base salary of $1,340,000; cash incentive target equal to 150% of base salary; sign-on cash award of $3,300,000 payable prior to Dec 31, 2026 (subject to repayment if terminated for cause or resigns without good reason before Dec 15, 2027).
• Equity and incentive grants for Mr. Abbate: a one-time sign-on restricted stock unit grant with grant date value of $12,000,000 vesting in equal semi-annual installments over 3 years beginning Mar 1, 2027; a 2027 performance-based restricted stock unit grant with a grant date target value of $8,000,000 (50% vesting tied to adjusted diluted EPS conditions and 50% tied to performance for the Jan 1, 2027 through Dec 31, 2029 period); future annual long-term incentive target of $8,000,000.
• Severance and change of control: Mr. Abbate will be a participant in the company’s Severance Policy (including 18 months of company-subsidized health and dental coverage upon qualifying termination) and will enter a change of control agreement providing, among other things, a pro rata bonus, a lump sum severance equal to two times the sum of base salary and the greater of target annual bonus or average annual bonus, continued health coverage up to 24 months and full vesting of equity in specified circumstances.
• Interim leadership and Europe changes: the Office of the Chief Executive Officer will consist of John Mendel and Sue Gove; Rick Galloway will serve as the company’s principal executive officer for SEC rules until Dec 15, 2026. Andy Hamilton ceased to serve as senior vice president and president and managing director of LKQ Europe effective Oct 23, 2026; the board retained Alvarez & Marsal to advise on European operations.

Why it may matter

• The filing reports Item 5.02 (departure and election of officers and directors), Item 2.02 (results of operations and financial condition via a press release for the quarter ended Sep 30, 2026) and Item 7.01 (Regulation FD disclosure regarding strategic alternatives and withdrawal of full-year 2026 guidance).
• The filing does not show why the insider traded or why the company acted.