Teamsters Challenge Executive Pay-For-Failure at Rite Aid Following Albertsons Debacl

[ABFwife]

(WASHINGTON) – Today, the International Brotherhood of Teamsters called on fellow Rite Aid Corp. (NYSE:RAD) shareholders to vote against the company’s “Say-on-Pay” proposal at the upcoming annual shareholder meeting and reject windfall payouts to executives following two failed merger attempts. The vote comes less than three months after Rite Aid was forced to terminate its merger agreement with Albertsons Companies, Inc. amid widespread investor opposition to the deal, and sixteen months since the collapse of the proposed Walgreen Boots Alliance Inc., (NYSE:WBA) merger.

In a letter to shareholders, the Teamsters took the pharmacy chain to task for paying lucrative retention bonuses to top executives tied to the failed mergers. Calling it one of the most perverse awards imaginable, the Teamsters blasted the agreement to pay CEO John Standley a $3 million bonus if the Albertsons deal did not go through – an award that was duly paid when the merger collapsed on the eve of the planned shareholder vote in early August.

The labor union, whose members’ pension and benefit funds hold over $100 billion in the capital markets, including significant Rite Aid holdings, similarly challenged the Compensation Committee’s decision to use its discretion to pay retention awards to executives that would have otherwise only been payable if the Walgreens merger had been completed.

https://teamster.org/news/2018/10/te...rtsons-debacle

[fxstc07]

One of the big problems in the corporate world.
Paying executives for poor performance or outright failure at many companies.

[222lifer]

One of the big problems in the corporate world.
Paying executives for poor performance or outright failure at many companies.

We know that all too well at YRC.

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