Sonic Automotive Inc. CEO David Smith, following the June 22 death of his father and company co-founder Bruton Smith, has been elected chairman of the board of the dealer group, according to a document filed with the U.S. Securities and Exchange Commission.
The filing said Sonic’s board elected David Smith, 47, on July 27.
In the same filing, Sonic said former CEO Scott Smith was elected, also on July 27, to fill the vacant board seat left open by his father’s death.
Scott Smith, 54, who co-founded Sonic with Bruton Smith in 1997, was the company’s CEO from July 2015 until he resigned in September 2018 and was succeeded by his brother David. Scott Smith had been on Sonic’s board from 1997 until 2018.
The regulatory filing noted that Scott Smith is a “greater than 10 percent beneficial owner of the company.” Scott Smith’s term on the board is set to expire at Sonic’s 2023 annual meeting of stockholders, the filing said.
Scott Smith, who Sonic noted has not been named to any committees of the board, will be paid a cash retainer of $85,000, payable in quarterly installments, the filing said.
He will receive a grant of 3,884 restricted shares of Sonic’s Class A common stock, which will vest in full on the first anniversary of the grant date, according to the filing.
Earlier this year, Sonic added Michael Hodge, executive vice president, finance, of Speedway Motorsports, to its board, while longtime board members Vic Doolan and Robert Heller did not seek reelection.
Sonic, of Charlotte, N.C., ranks No. 7 on Automotive News‘ most recent list of the top 150 dealership groups based in the U.S., with retail sales of 103,486 new vehicles in 2021.