Hello, and welcome to the Annual Meeting of Stockholders of Tractor Supply Company. I am the operator for today's call. Today's meeting over to Cindy Jamieson, Chairman of the Board of Directors of Tractor Supply Company. Ms. Jamieson, the floor is yours.
Good morning. My name is Cindy Jamieson, and I am the Chairman of the Board of Directors of Tractor Supply Company. On behalf of the company, I'd like to welcome you to the 2021 Annual Meeting of Stockholders.
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stockholders, team members and their families. We are holding this meeting virtually via webcast. All of us at Tractor Supply hope you are staying Safe and healthy during these challenging times. It is now 10 a. M.
And in accordance with the notice of this meeting, the meeting is now formally called to order. The meeting will be conducted in accordance with the rules of conduct available on the meeting website. The purpose of today's meeting is to consider each of the items the Q1 of 2019. Today's call. If you have a question or comment that relates to a proposal being presented, please submit it through the meeting website as soon as possible and prior to the discussion of that proposal, if possible.
Once we have considered each of the items in the proxy statement and voting is closed, some remarks regarding the company. We will have a question and answer session following Mr. Lawton's remarks. Following the close of voting, We will announce preliminary results of the meeting. First, let me introduce the other individuals who have been nominated along with myself for Verizon Media Group.
Ricardo Cardenas. Rick is the President and Chief Operating Officer of Darden Restaurants. Denise Jackson. Today's call. Thank you, Dennis.
Thank you, Dennis. Tom previously served as the Chairman of the Board, President and Chief Executive Officer of Burlington Stores Ram Kumar Krishnan. Ram is the Global Chief Commercial Officer for PepsiCo Edna Morris, Edna is Chief Executive Range Restaurant Group and is a Senior Advisor to the Food, Retail and Restaurant Groups of PJ Solomon. Mark Weichel, Mark previously served as the President and Chief Executive Officer of Retail Optical North America at Luxottica the group and Hal Lawton III. Hal is the President and Chief Executive Officer of Tractor Supply Company.
I would also like to George McKenzie, who is retiring from our Board today. George has served as a Director of Tractor Supply since 2000 and 7. Thank you, George, for your many contributions to this company as a member of this Board. I would also like to introduce the following members of the Tractor Tractor Supply Company management team who are with us today. Curt Barton, Executive Vice President, Chief Financial Officer and Treasurer Noni Ellison, Senior Vice President, General Counsel and Corporate Secretary Rob Mills, Executive Vice President, Chief Technology, Digital Commerce and Strategy Officer John Ortis, Executive Vice President, Chief Stores Officer Seth Estep, Executive Vice President, Chief Merchandising Officer Colin Yankee, today's call.
Executive Vice President, Chief Supply Chain Officer Matthew Rubin, Senior Vice President, Pet Computershare, who is serving as our Inspector of Election. And finally, I'd like to introduce Ritu Furlan from our independent auditors who will be available to respond to appropriate questions from stockholders later in this meeting. We have at this this meeting, a report of stockholders entitled to vote at this meeting and the proxies received from stockholders, a notice of the annual meeting of stockholders, the proxy statement, the annual report for the most recently concluded fiscal year and an affidavit of service of notice of the meeting certifying that these documents were mailed to the stockholders of record of Tractor Supply Company on or about March 25, 2021. These documents will be filed with the records of the company and Computershare, Storrs and Transfer Agent. The list of the stockholders of record at the close of business on March 9, 2021, who are entitled to vote, Showing their respective addresses and the number of shares held by each has been open to the examination of stockholders for more than 10 days prior to this this meeting as required by Delaware law and the company's bylaws.
In addition, the list is available at this meeting in electronic format for inspection by the inspection by the stockholders present. The bylaws of Tractor Supply Company require that a majority of the shares of common stock as of the record date today's call. Thank you, Mr. President. Thank you, Mr.
President. Our corporate secretary has been in charge of the proxy process. May I now have the corporate secretary's report on whether a quorum is present?
Madam Chairman, there are present at this meeting in person, virtually or by proxy more than a majority of the shares outstanding
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the close of business on March 9, 2021, the record date for this meeting, which constitutes a quorum.
Thank you. This meeting is now duly convened for the purposes of transacting business properly before it. The matters to be acted upon today will be considered in the order set out in the proxy statement. The results. The report of the Inspector of Election with respect to the votes cast will be given after the conclusion of the vote your vote through the meeting website.
Stockholders of record as of the record date will be able to ask questions regarding items on the agenda. Please submit any questions through the meeting website. The first item on the agenda is the election of directors. The Board of Directors nominates the following individuals to hold office until the 2022 Annual Meeting of Stockholders or until their successors are duly elected and qualified: Cynthia Jamieson, Joy Brown, Ricardo Cardenas, Denise Jackson, Thomas Kingsbury, Ram Kumar Krishnan, Edna Morris, Mark Weichel and Hal Lawton III. As stated in our proxy statement.
The Board recommends a vote for each of these nominees. A nominee will be elected to the Board of Directors if the votes the nominees exceed the votes cast against the nominees' election. However, in an uncontested election The director is required by the company's director resignation policy to submit his or her resignation to the Board of Directors for consideration by the Corporate Governance and Nominating Committee. The committee will consider the tendered resignation and make a recommendation to the Board for whether to accept or reject the resignation. The Board will take action within 60 days of receipt of the committee's recommendation questions closed.
If anyone is voting through the meeting website, please submit your vote now on item number 1. After voting has been the agenda is the ratification of as the company's independent registered public accounting firm for the fiscal year ending December 25, 2021. As stated in our proxy statement, the Board recommends a vote for such ratification. I will now pause questions submitted regarding the ratification of as the company's independent registered public accounting firm.
No questions have been submitted.
Thank you. There being no further no questions on the proposal, the discussion is closed. The company's execution of the named executive officers of the company. As stated in our proxy statement, the Board recommends a vote for such proposal. I will now pause to address any questions submitted regarding the advisory non binding vote on the compensation of the company's executive officers.
No questions have been submitted.
There being no questions on this proposal, the discussion The next item today's presentation. At this time, Sarah Murphy of the Shareholder Commons as the designated representative of the proponent who submitted the proposal set the proxy. We'll have an opportunity to make a brief statement regarding the proposal. If there are technical
Ms. Murphy's line is now open. Hello. Hello.
Murphy, the floor is yours.
Thank you. Shareholders request a statement on the purpose of a corporation, which commits Tractor Supply to deliver value for all stakeholders. Because Tractor Supply the Conventional Delaware Corporation. Our directors' fiduciary duties emphasize the company and its shareholders, but not stakeholders. This.
Legally, directors may consider stakeholder interests only if any decisions made with respect to such stakeholders are in the best interest of the corporation and stockholders. That contradicts the commitment our company made in the statement. Indeed, employees are stakeholders and yet our CEO makes 654 times more than our median paid employee and our lowest paid employees don't even earn a living wage. In contrast, directors of a public the company's financial statements. The company must balance the interests of shareholders, stakeholders and a specified benefit, giving legal status to the statement's otherwise empty promise.
A recent study determined that listed companies create annual social and environmental costs of $2,200,000,000,000 these costs have many sources including pollution, climate change and employee stress that matters to Tractor Supply's shareholders, the majority of whom are beneficial owners with broadly diversified its interest. Such shareholders and beneficial owners are unalterably harmed when companies follow Delaware's shareholder primacy model and impose costs on the economy that Tractor Supply, which reduces equity value. While Tractor Supply made profit by ignoring costs it externalizes, diversified shareholders will ultimately pay these costs. Tractor Supply. As a public benefit corporation, Tractor Supply could prioritize reducing these costs.
Our Board understands this. It says as much in its opposition statement to this proposal. Shareholders are entitled to vote on a change that would serve their interests and ensure the commitment made to stakeholders is authentic and lasting.
Ms. Jamieson, the line is now back to you.
Thank you, Ms. Murphy. As stated in the proxy statement, our Board has considered this proposal and recommends a vote against the stockholder proposal. I will now pause so that we may address questions submitted regarding the vote on the shareholder proposal. As this matter relates to the legal corporate form of the corporation, Noni Ellison, our Senior Vice President, General Counsel and Corporate
No questions have been submitted.
There being no questions on the proposal, the items set forth in the proxy statement. I will pause briefly to allow stockholders to submit any final votes. I now declare that the polls to be officially closed for all matters. The company's submission report to me, which is as follows: number 1, then to serve until the 2022 annual meeting or until their the Q3, the advisory vote to approve our executive compensation has been approved and number 4, for our auditor, desire to make a statement.
No, and no questions have been submitted.
Thank you. The formal business portion of this meeting is now adjourned. Today's conference call. Hal Lawton will now provide an update on the company's business.
Thank you, Cindy. I'm honored to share with you more about Tractor Supply and highlights of our 2020 results. Tractor Supply. It's a very special company with a clear purpose. Before we get started, please note that any the Q1 of 2019.
I would like to I'd like to start this morning with a few high level facts about Tractor Supply. We're the largest rural lifestyle retailer in the United States. We serve life out here. We are an integral part of our customers' lives. In 2020, we ranked number 380 in the Fortune 500.
At the end of last year, We employed over 42,000 team members across the United States in 1923 Tractor Supply stores 182 Petsense stores. In 2020, we hired more than 10,000 net new team members. As an essential needs based retailer, we equip a way of life, a way of life that we respect, Our long term success is driven by being differentiated from our competition. We have a very special culture. We serve a unique customer and lifestyle.
We have a strong brand and business model, And we have a strong foundation for growth. We're investing in the business and committed to growth. We are uniquely positioned to become a more integral part of our customers' lives and we have proven that over the past year. Our culture is a true competitive advantage. Our mission is to work hard, have fun and make money.
And this mission is supported by 10 values. Combined, they serve as the underpinning of our culture and the guiding principles for how we conduct our business and we have relied on these heavily over the past unprecedented year. ESG is important to our team members, our customers, the communities we call home and our investors. In 2018, we announced our goal to reduce carbon emissions from our facilities by 25% by 2025. And this past December, we announced that we surpassed that goal 5 years early.
In 2020, We also reinforced our commitment to ESG by improving our reporting and transparency, particularly through the issuance of 2 inaugural reports, our ESG tear sheet and our task force for climate related financial disclosures. And just a couple of weeks ago, we updated our tier sheet and plan to continue to do so. We are also a strong proponent of diversity, equality and inclusion in our workforce with 49% of our team members being female. This past year, we started 4 new team member engagement groups and we implemented many in activities and initiatives Tractor Supply to train, engage, measure and demonstrate internal and external commitment to DE and I. Also notably in 2020, Tractor Supply was designated as a great place to work.
Throughout the last year, our utmost priority has been the health, safety and well-being of our team members and customers. As an essential needs based retailer, We executed and continue to execute a number of actions that allow us to protect our team members and better serve our customers during this time of crisis. From adding a dedicated greeter to every store, providing PP and E, paying appreciation bonuses, providing wage increases permanent, extending paid sick leave to dozens of other things. We focus on taking care of our team members, So in turn, they can take care of our customers. This has always been a hallmark of our mission and values.
Additionally, we remain committed to supporting the communities we call home. Last year, we donated $12,000,000 charitable giving, including a $4,000,000 initial funding for our Tractor Supply Company Foundation. Notably, we joined the American Connection Project Broadband Coalition to help bring high speed Internet infrastructure to rural communities. To date, we have provided free Wi Fi access at more than 1400 store locations across the country and have committed $1,000,000 in donations taking the questions to the Broadband Coalition. Tractor Supply has continued to deliver a strong record of results and we have an exciting future ahead of us.
With sales in excess of $10,000,000,000 in 2020, our We are winning with our customers. Net new customers were up plus 14% year over year last year with 3,300,000 new customers. Our reengaged customers were up 42% year over year with 2,000,000 reengaged new customers last quarter. We are growing share with our existing customers. We have a maniacal focus on legendary customer service in our stores to keep these customers coming back to Tractor Supply.
We have constantly delivered strong results over the last decade. We have a track record of positive performance in same store sales growth. We've generated strong free cash flow while maintaining discipline on the use of financial leverage. We have a strong and vibrant business that generates strong free cash flow. We're committed to investing in the business for growth and we have a proven track record for returning cash to shareholders through both dividends and stock repurchases.
We've had 11 consecutive years of increasing our quarterly dividend since 2010. We increased our dividend by 30% in February and just this morning we announced our quarterly cash dividend was approved by our Board of Directors. We rolled out our Life Out Here strategy in October of 2020. With our strong performance in 2020 and the current momentum in our business, the team at Tractor Supply is excited about investing in the Life Out Here strategy and accelerating our performance. There are 5 pillars to the Life Out Here strategy.
The first is delivering legendary customer service. The second is advancing our 1 tractor capabilities. The third is operating the tractor way. The 4th is going the country mile for our team. And the last is generating healthy shareholder returns.
Our clear focus enables us to be the innovative leader in our channel and emerge from the pandemic To wrap up, Tractor Supply has a resilient business model with a differentiated loyal and growing customer today's call. We're moving at a fast pace. With our Life Out Here strategy, we continue to evolve Tractor Supply Company. I am the operator for
Tractor Supply Company
into the future. Now is the time for us to invest as we look to drive sustainable growth and create long term value for our shareholders. Thank you for your time. We will now take any questions from shareholders.
There are no questions from shareholders.
Thank you. We look forward to updating you on the evolution of our business and our continued success. Thank you for your support and the confidence you have placed in Tractor Supply. And this concludes the business portion of our meeting.