What should happen is Ron takes the $500,000 allotted for Exec bonuses and actually pays out full bonuses to stores that did well.
That will never happen though because who cares if a few GMs and assistants quit, as long as Ron is taken care of.
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In their eyes they are completely justified in taking the bonuses.
They are there to guide the company for the "long term". Profitability and growth of the business are the ultimate goals. In times like these, the goal seems to be mere survival.
Anyone in the stores is considered expendable, or "short term" (not referring to length of service here).
So if several GMs and store associates quit because they do not get a raise or a bonus, it is irrelevant to the company as a whole. If Ron looks for greener pastures and leaves because he has not received his usual compensation level in 2 years, that gains public notice and can affect the stock price. (not saying Ron and his cronies leaving would be a bad thing at this time).
At the level they play at, the bonuses they are looking at this year are chump change. They look at it more like a badge showing their sacrifice rather then being ashamed of taking anything.
No raise for associates NO raise for executives either. We are need to share the pain if that's what it takes. Feeling bad for those that have or will be losing their jobs. It takes a lot of nerve to accept a bonus when all are hurting. HOW CAN THEY LOOK AT THEMSELVES WHEN GETTING READY FOR WORK.
Screw Ron, he should be paying Staples for getting work experience here, not the other way around. What did he do for the company, the whole exec pay scam is ridiculous.
You really think so?
I am betting Ron has the bonuses pushed through the way John Favreau did in the movie Identity Theft
Ron Sargent and Crew are about to give us a lesson in character and integrity!
It was only $300,000 this time. Barely enough for maintenance on his yacht.
Chances are the board will still give it to him despite the shareholders rejecting the bonus plan.
Closing locations and laying off employees is the go-to plan these days in retail, Staples does not need this overpaid failure to come up with it. Time for Ron and his cronies to go.
So Ron doesn't get his $3m bonus, but he does get $10m in stock incentives. I make $8/hr.
from Bloomberg News--
Staples Shareholders Vote Against Executive-Compensation Plan
Staples Inc. (SPLS) investors rejected the office-supply chain’s executive-pay program in an advisory vote, joining a wave of shareholders criticizing compensation levels at U.S. corporations.
At the company’s annual meeting yesterday, 54 percent of votes were cast against the compensation of top executives, according to a regulatory filing. Investors also passed a nonbinding proposal calling for an independent chairman.
The vote marks the latest case of shareholders chafing at executive compensation. At Chipotle Mexican Grill Inc. (CMG)’s investor meeting last month, about 77 percent of shareholder votes opposed the restaurant chain’s compensation terms. Abercrombie & Fitch Co. (ANF), meanwhile, announced in May that it had lowered its chief executive officer’s 2013 compensation by 72 percent after sales and profit fell.
Staples’ CEO, Ron Sargent, received $10.8 million in compensation in fiscal 2014, mostly from stock awards. That was a 66 percent rise from the $6.47 million he was paid the previous year. Still, the amount was down from the $15.1 million he received in 2011.
Sargent, who became CEO in 2002, took on the chairman role in 2005.
Kirk Saville, a spokesman for Framingham, Massachusetts-based Staples, said in a statement that the company takes “shareholder input very seriously. The board of directors will take these results into consideration as it continues to work to build value for all shareholders.”
At yesterday’s meeting, shareholders also voted to re-elect 11 board members, including Sargent, and approved the company’s stock-incentive plan.