Thursday, June 08, 2000
What's the Buzz?
Kroger biggies with bagger pay?
By Lisa Biank Fasig
The Cincinnati Enquirer
There are those who are indignant about high compensation rates of top executives, and then there are those who are inspired to put their two percents in.
Meet Carl and Beverly Freije, owners of 256 shares of Kroger Co. stock. The Indianapolis couple wants to severely limit pay and other compensation of Kroger officers, the chief executive and board members. Specifically, they suggest cutting total pay to just 2 percent above the lowest paid hourly worker.
A proposal, submitted for Kroger's proxy statement, would apply only to succeeding executives and directors of Kroger. The annual meeting, when this and other proposals will be voted on, is June 22.
Mr. Freije, a World War II naval intelligence veteran, said he just wants what's fair for employees and shareholders. He said most corporate executives and directors make too much, and the pay should be distributed among workers and investors.
“I'm not trying to be a socialist or a communist,” the father of 14 said. “I feel that if I were in their position, I would try to be fair to employees.”
Adoption of such a proposal would sharply reduce Kroger's income expense — CEO Joseph Pichler earned more than $1.7 million last year in salary and bonus. But paying a CEO roughly 15 cents more an hour than a bagger is going to make it tough to find qualified successors.
Company directors recommend a vote against the proposal.
Maybe if Mr. Freije threw in some triple coupons.
Have a tip about a Tristate company that should be included in our daily Buzz? Give business editor Richard Green a call at 768-8477 or e-mail him at rgreen@enquirer.com.
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