Safeway CFO Resigns
By George Anderson
The chief financial officer (CFO) of the Safeway US grocery chain has resigned making his the second high-level executive departure from the company in the past year, reports
the Associated Press.
Vasant Prabhu is leaving his post as Safeway’s CFO to take a similar position with Starwood Hotels and Resorts Worldwide.
Safeway’s former executive vice president in charge of marketing, Richard Dreiling, left the supermarket chain earlier this year.
Moderator’s Comment: What does Vasant Prabhu’s resignation mean for Safeway?
It will mean trouble from Wall Street. That is almost a certainty.
Safeway treated Prabhu as a prized employee, according to an Associated Press report. The company gave him a $325,000 signing bonus when he joined
the company in 2000. It also paid him a “retention bonus” of $500,000 last year in addition to his $535,000 annual salary.
His leaving will have many questioning what is going on at Safeway in light of its current competitive situation and the labor unrest it is dealing with
across the nation.
Mr. Prabhu’s departure comes at the same time the Attorney General of Calfornia begins an investigation to determine if Safeway, Kroger and Albertsons violated
any state or federal antitrust legislation. [George
Anderson – Moderator]