Supervalu Pays CFO $300K to Stay Two More Months
Supervalu, Inc., is paying Chief Financial Officer (CFO) Sherry Smith $300,000 to remain at the company two months longer than previously intended while the company continues to search for her replacement.
The Eden Prairie-based grocer previously said that Smith, who is also an executive vice president, would leave the company at the end of May. Smith, who joined Supervalu 26 years ago, has served as CFO since December 2010.
According to a Wednesday filing with the U.S. Securities and Exchange Commission, the company will award Smith a retention payment of $300,000, which comes in addition to her usual salary. Smith’s total compensation for the fiscal year that ended February 2012, the latest period for which information is available, was $1.8 million, including a base salary of $594,615.
The original plan for Smith’s departure, as well as the exit of Executive Vice President Todd Sheldon, was announced in April as part of President and CEO Sam Duncan’s plan to finalize his executive leadership team, Duncan was named CEO in February.
Karla Robertson was named as Sheldon’s replacement, but the company said in April that it would name a new CFO “at a later date.”
Supervalu announced its planned management changes less than two weeks after completing the sale of five of its largest retail grocery brands to AB Acquisition, LLC, an investor group led by New York-based private investment firm Cerberus Capital Management L.P., in a deal worth $3.3 billion. The group bought 877 stores under the Albertsons, Acme, Jewel-Osco, Shaw’s, and Star Market banners, as well as the associated Osco and Sav-on in-store pharmacies.
Supervalu in January announced that it had struck a deal to sell the five grocery brands. The company said at the time that, following the close of the transaction, Duncan would replace Wayne Sales, who became Supervalu’s president and CEO last year. The company appointed Duncan to his new post in early February, saying that the timing would enable him to “immediately start refining and, where appropriate, implement his plans for the business.”
Supervalu also recently appointed two new members to its board of directors. John Standley, chairman, president, and CEO of Rite Aid Corporation, and Mark A. Neporent, chief operating officer and general counsel of Cerberus Capital Management, L.P., were both appointed to the board on April 26.
In the Wednesday regulatory filing that disclosed Smith's retention payment, Supervalu also outlined stock options that were recently granted to certain executives. Duncan and President of Independent Business Janel Haugarth were granted options to acquire 829,892 and 276,631 shares, respectively. Meanwhile, non-executive Chairman Bob Miller was granted stock options for 1 million shares, in lieu of other payment he would have received for his role as chairman. The stock options have an exercise price of $6.49.
Supervalu reported sales of $17.1 billion for its 2013 fiscal year, which ended February 23, down from $36.1 billion the year before, following its recent sale of five grocery brands.
Shares of Supervalu’s stock were trading down about 3.5 percent at $6.21 mid-day Thursday.