NY Times Questions A&P Chief Exec’s Pay Raise
By George Anderson
The Great Atlantic and Pacific Tea Company and its chief executive, Christian Haub, are among those cited in a New York Times article on executive compensation.
The Times questions whether corporate compensation committee members have the independence to say no to chief executives and other top management seeking pay increases. “An examination of almost 2,000 corporations finds that at hundreds of them, members of the compensation committee work for or do business with the company or its chief executive. In some cases, they even belong to the executive’s family.”
Great Atlantic and Pacific Tea (A&P, Waldbaum’s, Farmer Jack, etc.) has a compensation committee that is largely beholding to Mr. Haub, according to the Times report. Two of the three members of the compensation committee work on behalf of Mr. Haub’s family.
In 2001, Mr. Haub was given a 53 percent raise over the previous year despite eliminating dividend payments to investors, closing stores and fighting to regain its footing in a highly competitive grocery market.
Moderator’s Comment: What is your take on the top executive’s
It needs noting that Rick De Santa, vice president for
corporate affairs at A&P told the New York Times that Mr. Haub’s package
was in line with the retailer’s profits in 2001. He also told the newspaper
the board was considering changes to the compensation committee.
Anderson – Moderator]