Copart Grants New CEO 20 Million Options Outside Equity Plan
Company Background
Copart, founded in 1982, operates online vehicle auctions connecting insurance companies, fleet operators, and dealers to roughly one million registered members across more than 185 countries. With operations at over 250 locations in 11 countries, the Dallas-based company sold more than four million units in its most recent fiscal year. Its approximately $25.7 billion market capitalization makes it one of the larger names in specialty automotive services.
Financial results for the fiscal year ended July 31, 2026 showed revenue of $4.7 billion, up just 0.4%, while net income attributable to Copart fell 4.4% to $1.5 billion and diluted earnings per share declined 2.5% to $1.55. The fourth quarter alone saw net income drop 17.4% year-over-year. Against that backdrop, Copart also executed its largest acquisition in recent memory, agreeing in September 2026 to buy ACV Auctions — a wholesale dealer marketplace — at $10.50 per share in cash, a deal that closed on October 16, 2026.
Leadership changed materially in this period. A. Jayson Adair, who previously led Copart as CEO before moving to Executive Chairman, returned to the CEO role effective July 31, 2026, replacing Jeffrey Liaw, who transitioned to a Senior Advisor role. Adair is the son-in-law of Willis J. Johnson, Copart's Chairman of the Board, a relationship disclosed in the compensation filing.
What Was Disclosed
A nonstatutory stock option to purchase 20,000,000 shares of Copart common stock was granted to Adair on October 14, 2026. The board approved the grant upon recommendation from the Compensation Committee. The 20 million shares are divided into four equal tranches of five million shares each, with exercise prices of $26.27, $35.03, $43.78, and $52.54 per share, respectively. The option has a 10-year term and vests in full — as a cliff — on the fifth anniversary of the grant date, subject to Adair's continued service as CEO.