Statement On A&P CEO Sam Martin's Lucrative Bonus & Salary During Bankruptcy

In response to the report from Supermarket News of A&P retaining CEO Sam Martin for a $1.2 million dollar annual salary and $720,000 signing bonus, President Bruce Both released the following statement:

The Following is a Statement from UFCW Local 1500 President Bruce W. Both Regarding the Details of A&P/Pathmark President Sam Martins Salary and Financial Incentive Package

“At a time when we should all be feeling positive about A&P/Pathmark emerging from Chapter 11, we are reminded how unfair the bankruptcy process has been to the A&P/Pathmark employees and union members operating the stores.

While the workers who are the foundation of this company and its only hope for a successful turnaround have been asked to endure painful economic cuts, A&P CEO Sam Martin is being given an unnecessary and excessive signing bonus in addition to his $1.2 million dollar annual salary.

These actions are the type that cut at the morale of the workforce and question whether A&P has any understanding of the sacrifice its employees have made to turn around this once proud supermarket chain and return it to profitability.”

Related:  Supermarket News: A&P to Retain Sam Martin as CEO http://supermarketnews.com/latest-news/martin-stay-ap-ceo

Sam Martin to Remain as A&P CEO

Update for Pathmark Members, A&P has announced Sam Martin will remain as CEO, inking a $1.2 million annual deal, which included a $720,000 signing bonus.

From Supermarket News: http://supermarketnews.com/latest-news/martin-stay-ap-ceo
Martin to Stay as A&P CEO
Thu, 2012-03-01 06:52
By: Jon Springer

MONTVALE, N.J. — Sam Martin has accepted an offer of $1.2 million annually to remain as the chief executive officer of A&P upon its emergence from Chapter 11, court papers showed.

Martin — along with most of his current senior executive team — is set to remain in place as A&P exits Chapter 11 bankruptcy and continues as a private company with new owners. Martin will receive an annual salary of $1.2 million and agreed to a sign-on bonus of $720,000 to be paid by the company’s new owners. Martin will also participate in a long-term incentive plan that could earn him a share of up to 7.5% of the equity in the new company, as well as a short-term bonus plan.

The employment status of Jake Brace, the company’s current chief financial officer and its chief restructuring officer, remains subject to ongoing negotiations, A&P said.

Current senior executives Thomas O’Boyle (chief merchandising officer); Paul Hertz (chief operating officer); Christopher McGarry (chief legal officer) and Carter Knox (chief human resources officer) have also been retained and are likewise eligible for the long-term and short-term incentives as Martin.

Martin will also serve as one of seven members of the board of directors for the new company.

In a separate filing, the United Food and Commercial Workers union indicated it had designated Lou Giraurdo to serve on the board of directors of the new company. The UFCW was granted one board appointee who would not serve on behalf of, or take orders from, the union.

Giraurdo is a partner in a San Francisco law firm of Coblentz, Patch, Duffy & Bass and represents food and financial services firms in acquisitions and refinancings. He is also a co-founder and partner in GESD Capital Partners, a private equity firm with investments in several food and wine companies; a former CEO of Pacific Coast Baking Co.; and a former chairman of Pabst Brewing.

New owners Yucaipa Co., Mount Kellet Capital Management and Goldman Sachs were to appoint five board members. Yucaipa’s Ron Burkle will serve as chairman.

As reported previously, the judge this week approved A&P’s reorganization plan, and the company is expected to emerge from Chapter 11 shortly.

13 UFCW/RWDSU Locals Ratify New A&P Agreement

13 UFCW/RWDSU Local Unions Overwhelmingly Ratify New A&P/Pathmark Agreement

UFCW Local 1500 President Bruce W. Both announced that the thirteen UFCW/RWDSU Locals participating in the A&P/Pathmark contract modification negotiations have ratified the new collective bargaining agreement. The following are the total votes cast:

7200 Voted 'Yes' to Accept the Contract Modifications

1827 Voted 'No' to Reject the Contract Modifications

“We know the past year was an extremely difficult time for UFCW Local 1500 members employed by Pathmark.  All of us at the Union are very grateful for the support and patience shown by the Pathmark workers.  While we all recognize the changes to the Pathmark contract are substantial, we are pleased that we were able to conclude this process with our Health Insurance and Pension programs unchanged.   Additionally, several provisions of the new agreement will expire during the life of the contract and will not have to be negotiated back in 2016.   Also, management proposals to gut the job protection language in your contracts were completely defeated," President Both stated.

“While I acknowledge that we now must move forward, we must also remain vigilant and united every day. We expect that early next year A&P/Pathmark will emerge from bankruptcy.  The new management team at A&P/Pathmark must listen to the voices of the workers if they are to have any chance to once again be a growing and successful supermarket.  However, as we have said in the past, Local 1500 will remain cautious and will be ready to protect our Union members jobs should A&P/Pathmark management take any actions we believe to be counter-productive to its success and harmful to our membership.”

“The key to our future is solidarity and unity.  Without that, I have no doubt that thousands of Pathmark workers today would be seeking new jobs during a horrible economy rather than going to their stores knowing their working conditions far exceed those of non-union companies like Walmart, BJ's and Target.  By remaining unified we can work to undo the difficult, but necessary, changes to this contract when we negotiate a new collective bargaining agreement in 2016.  Again, on behalf of the entire staff and leadership of UFCW Local 1500, I thank you for your for patience, support, and most importantly, your solidarity."