Executive Pay
Mike Armstrong, Inquirer Columnist
The day after Aramark Corp. introduced Eric J. Foss as its new CEO, the Philadelphia food-services and faciliites management company released its financial results for its second quarter.
Net income was $9.89 million in the quarter ended March 30, down 52 percent from $20.39 million for the same quarter of 2011. In terms of operating income, Aramark reported a 9.4 percent increase to $133.71 million from $122.27 million.
Saless rose 3.9 percent in the second quarter to $3.35 billion from $3.22 billion a year ago.
In a filing with the Securities and Exchange Commission, the privately held company attributed the increased sales to growth in its higher education business, as well as the sports and entertainment and health-care parts of its North American Food and Support Services unit.
Mike Armstrong, Inquirer Columnist
As Charming Shoppes shops its Fashion Bug chain, it made a move to retain the executive who runs that division.
The Bensalem retailer has promised a retention bonus of $125,000 to MaryEllen MacDowell if she stays at Fashion Bug either through the closing of a sale or April 1 -- whichever comes first.
Oh, but there's more, according to a filing with the Securities and Exchange Commission.
Mike Armstrong, Inquirer Columnist
Unisys Corp. has a minor fight on its hands over its executive compensation practices.
Like all companies including a “say-on-pay” advisory vote this year, Unisys is asking its shareholders to approve of the way it pays senior executives.
However, one influential proxy advisory firm that’s analyzed the Blue Bell information technology company’s financial performance and total return concludes that shareholders should cast dissenting votes.
If you simply look at the column for total compensation on “summary compensation table” in Unisys latest proxy statement, you’ll see that the 2010 figures are higher than the 2009 figures for all five “named officers,” including Unisys chairman and chief executive officer J. Edward Coleman, who saw his compensation rise to $5.73 million from $3.70 million.
Mike Armstrong, Inquirer Columnist
Even if they're not binding on boards of directors, the "say on pay" proposals that many shareholders will see for the first time this spring on proxy ballots promise to enliven the stodgy process of corporate governance.
It's not that shareholders have suddenly gained the power to replace the often-complex pay schemes for the chief executive and other senior managers with straight-time paychecks at $15 an hour.
But the exercise could begin to send some not-so-subtle messages to boards about how they pay corporate leaders and how often shareholders want the chance to vote publicly on those compensation practices.
Mike Armstrong, Inquirer Columnist
AmerisourceBergen Corp. shareholders have spoken, and they want the right to vote annually on the pay packages of the company’s senior executives.
At the annual shareholders meeting Thursday, a majority of the votes were cast in favor of holding an advisory vote, or “say on pay,” each year, rather than every three years, as the board of the drug wholesaler had recommended.
In addition, shareholders approved the compensation arrangements for the top management of the Valley Forge company.
Mike Armstrong, Inquirer Columnist
Three public companies will hold annual shareholders meetings in the Philadelphia area during this holiday-shortened week.
The biggest to do so will be UGI Corp., of King of Prussia, which will summon shareholders to the Desmond Hotel & Conference Center in Malvern Thursday at 10 a.m.
Lon R. Greenberg, 60, has been chief executive officer of the propane and natural gas provider since 1995. After his first full year running UGI, the company had revenues of $1.6 billion. For its most recent fiscal year ended Sept. 30, UGI had revenues of $5.6 billion.
Mike Armstrong, Inquirer Columnist
When it comes to figuring out what to pay someone after the unthinkable happens, Kenneth R. Feinberg is obviously the best.
He must be, because he keeps taking on what seem to be thankless tasks:
* Deciding payments from a $7 billion special- compensation fund set up by Congress for those injured or killed in the Sept. 11, 2001, terror attacks.
Inquirer Columnist
When it comes to figuring out what to pay someone after the unthinkable happens, Kenneth R. Feinberg is obviously the best.
He must be, because he keeps taking on what seem to be thankless tasks:
* Deciding payments from a $7 billion special- compensation fund set up by Congress for those injured or killed in the Sept. 11, 2001, terror attacks.
Mike Armstrong, Inquirer Columnist
It took only 20 weeks for Constar International Inc. to find a new chief executive officer after Michael J. Hoffman resigned April 28.
But the Philadelphia plastic-container manufacturer had to pay up to pry Grant H. Beard away from a Michigan private-equity firm.
Beard, 49, will get a base salary of $750,000, according to a filing with the Securities and Exchange Commission. That’s more than the $497,950 his predecessor had gotten.
Mike Armstrong, Inquirer Columnist
Summer tends to be a slow time for business in so many ways. There’s more action at seaside than at the C-level, including changes in chief executive officers.
CEO turnover in July was at its lowest level in 16 months, according to a monthly scorecard kept by the Chicago outplacement firm Challenger, Gray & Christmas Inc.
There were just 88 CEO changes in July compared with 126 in the same month a year ago. And Challenger Gray says that in three of the last five years, CEO turnover has been lower in July than the annual average.
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980.
Reach Mike at marmstrong@phillynews.com.
