Safeway Takes Heat for Not Acting on Promises
By George Anderson
If it’s the difference between what you say and what you do that gets you in trouble, then Safeway can teach other businesses a valuable lesson.
One year after a contentious annual shareholders’ meeting, the AFL-CIO is asking why Safeway has not yet followed through on its pledge to remove members of its board, William
Tauscher and Robert MacDonnell, from committees where potential conflicts of interest might exist.
“They essentially reneged on a commitment,” said Mike Garland, the corporate transactions coordinator for the AFL-CIO’s Office of Investment. “I think shareholders deserve an
The commitment that Safeway made publicly was to change the roles of William Tauscher and Robert MacDonnell on the company’s board of directors. In a press release issued last
May, Safeway said it would name a new director to succeed Mr. Tauscher as chairman of the executive compensation committee, and Mr. MacDonnell would no longer serve on the audit
Robert Gordon, Safeway’s general counsel, according to the Contra Costa Times, said the company still intends to replace Mr. Tauscher as chairman of the executive compensation
committee “in the near future” after new directors have gained more experience.
The company has kept Mr. MacDonnell on its audit committee because Safeway believed the alleged conflicts of interest no longer applied.
Moderator’s Comment: What is your assessment of Safeway’s handling of issues related to its board of directors? What, if anything, does it need to do
George Anderson – Moderator