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On July 22, 2026, The Toro Company announced a planned leadership succession, naming Edric C. Funk as President and Chief Executive Officer effective November 1, 2026. Having joined Toro in 1996 and served in diverse roles spanning residential, landscape contractor, international, and commercial business units, Funk will succeed Richard M. Olson, who will become Executive Chairman. This transition is part of Toro's long-term strategic planning as Olson concludes a decade of leadership at the turf and landscape equipment manufacturer.
Key Points
- NYSE: TTC
- Edric C. Funk appointed President and CEO effective November 1, 2026, and immediately joins the Board
- Richard M. Olson transitions to Executive Chairman on November 1, 2026, after leading since November 2016
- Funk’s base salary raised from $715,000 to $1,000,000; Board expands from nine to ten directors
- Compensation & Human Resources Committee to finalize additional pay details for both executives in December 2026
Edric C. Funk’s Nearly 30-Year Journey Within Toro
Edric C. Funk’s career at The Toro Company began in 1996 as a design engineer, grounding him in the company’s core product development and manufacturing processes. Over the years, he transitioned from engineering to leadership roles, gaining extensive experience across Toro’s Residential, Landscape Contractor, International, and Commercial segments. By 2014, he was director of global product management for the Commercial and International businesses, showcasing his ability to oversee cross-functional strategies.
Funk’s progression reflects a blend of technical expertise and broad commercial leadership, equipping him with a comprehensive understanding of Toro’s diverse revenue streams and operational challenges.
Advancement Toward CEO Role and Operational Leadership
Funk’s recent positions highlight his readiness for the CEO role. In 2017, he became managing director of Toro’s Center for Technology, Research & Innovation, aligning strategic innovation with operational demands. In November 2020, he took on the general manager role for the Sitework Systems business, followed by promotion to group vice president of Golf, Grounds and Irrigation in November 2022, overseeing a major division.
In September 2025, less than a year before his CEO appointment, Funk was promoted to President and Chief Operating Officer, gaining direct oversight of overall operations, capital allocation, and cross-divisional coordination under Olson’s leadership.
Richard M. Olson’s Decade of Leadership and Transition
Since November 2016, Richard M. Olson has served as Toro’s CEO, and as Chairman since November 2017. His tenure encompassed navigating market shifts, supply chain challenges, and competitive pressures in landscaping equipment. Olson’s move to Executive Chairman on November 1, 2026, is part of a planned succession, ensuring continuity and knowledge transfer while stepping back from daily operations.
As Executive Chairman, Olson will continue contributing to board-level governance and strategy without direct operational responsibilities.
Compensation Updates for New Leadership
Following the Compensation & Human Resources Committee’s recommendation, Funk’s base salary will increase from $715,000 to $1,000,000 effective November 1, 2026, with a fiscal 2027 annual cash incentive target set at 120% of base salary. Final details regarding equity awards and other compensation will be determined by the Committee in December 2026.
Funk will also become eligible for CEO perquisites as detailed in Toro’s Schedule 14A Proxy Statement filed February 3, 2026. As an employee director, he will not receive additional director fees nor serve on Board committees during his employment.
Olson’s Compensation as Executive Chairman
Olson’s Executive Chairman role will carry a base salary of $763,000, lower than his CEO salary, with a fiscal 2027 cash incentive target of 130% of base salary. The Committee will finalize corporate performance measures and any equity awards in December 2026. Olson remains eligible for executive perquisites previously available in his CEO role, reflecting a supportive transition rather than severance.
Board Expansion and Governance Adjustments
The Board has expanded from nine to ten directors, with Funk filling the new seat effective immediately. His director term will extend through the 2027 Annual Meeting of Stockholders. This expansion underscores confidence in the leadership transition and provides Funk with early board engagement ahead of his CEO start date.
There are no arrangements or family relationships between Funk and other executives or directors, and no material transactions requiring disclosure have occurred since the last fiscal year.
Succession Planning and Continuity Strategy
This leadership transition is part of Toro’s deliberate long-term succession planning. Funk’s appointment as President and COO in September 2025, thirteen months before becoming CEO, aligns with best practices to ensure comprehensive CEO responsibility exposure under Olson’s mentorship.
The company emphasizes internal promotion, selecting a seasoned executive with decades of institutional knowledge rather than an external hire. The staggered transition allows for structured knowledge transfer and stakeholder communication.
Investor Insights and Strategic Outlook
Investors will be watching how Funk’s leadership shapes long-term strategies across Toro’s Residential, Landscape Contractor, International, Commercial, Golf, Grounds and Irrigation, and Sitework Systems segments. His combined engineering and commercial management background may influence capital allocation, R&D focus, and geographic growth initiatives, impacting Toro’s competitive stance in landscaping equipment markets.
The seamless succession with Olson remaining as Executive Chairman supports continuity in governance and institutional memory, while fresh operational leadership under Funk may drive new strategic priorities. Additional disclosures on equity compensation and fiscal 2027 performance metrics are expected following the December 2026 Compensation & Human Resources Committee meeting.
About The Toro Company and Market Environment
The Toro Company manufactures and distributes outdoor equipment and landscaping services, serving multiple segments: Residential (homeowners), Landscape Contractor (professional landscapers), Commercial (golf courses, sports fields, property managers), International operations, and specialized units including Golf, Grounds and Irrigation and Sitework Systems. Revenue is generated through equipment sales, parts, and services across these complementary markets.
Toro operates in cyclical industries influenced by consumer spending, commercial construction, and agriculture. Demand for residential equipment depends on economic growth, weather, and discretionary spending, while professional landscaping correlates with construction activity. The Golf, Grounds and Irrigation division serves recreational and municipal irrigation markets. Understanding these dynamics is key to evaluating how leadership changes may affect Toro’s strategic direction and competitive positioning.
