Because the company did better than expected over the last 3 years, Delhaize’s CEO Pierre-Olivier Beckers, received around 2.96 million Euros. Because of a so-called flashback bonus his wage grew by one fifth. Initially, he got an annual bonus of 600,000 Euros. Next to that, he also received an additional long-term bonus of about 1 million Euros. As I already mentioned, Delhaize Group outperformed their expectancies over the past three years. This is why the company’s CEO obtained a flashback bonus for successfully piloting Delhaize through a difficult period. Let’s not forget that he already has a basic annual wage of 900,000 Euros and next to that and the bonuses he also saw his pensioner’s fund growing by 400,000 Euros and gained for 6,000 Euros on short-term benefits over that same period.
Based on his overall performance in 2009, the company’s CEO will also be awarded 700,000 Euros. This, as already mentioned, will bring his full amount wage to a level that is unseen and is therefore the highest paycheck in comparison to other remunerations in Belgium. This is actually peanuts when we take a look at the total stock exchange value of the company, namely around six billion Euros.
Moreover, Beckers also obtained a total of 35,000 share options with an initial value of 50.03 EUR. In the present day the value is approximately 60. In other words, his share package already illustrated the company’s positive performances. Ofcourse, Beckers’ shares haven’t been fully cashed so far, that’s why the package is still variable in value and the exact value can’t be estimated at this time. On the other hand, the top manager turned 17,959 options in hard cash.
The 3-million-man is person in charge for Delhaize Belgium as well as Delhaize America. Under his governance Delhaize has put more attention on internal association and succeeded in his purpose. The last few years Beckers increased the profit and reduced the debt level.
In my opinion Beckers’ earnings are on the border of approval. We must recognize the fact that the CEO has somehow managed to ameliorate the financial situation in a somewhat sustainable way. As a consumer I see that many Delhaize supermarkets have undergone a transformation from nice stores to product experience and high quality advice-giving shops with thought through departments. I don’t know whether he can be fully linked to this success. Moreover, he’s not the only management component; he’s as much as the short-term executor and is in as far as the daily gesture.
If you take a closer look at all the numbers mentioned above and convert them in hard cash, we see a total pay envelope of over 5 million Euros. I find it hard to decide whether this wage is acceptable, it’s also not for me to decide. On the other hand, I think because of this decision Delhaize the media focuses very much on one person. I can hardly believe that one single person is so important for the success of a company that size. When we make use of the idealistic principle “you should earn what you deserve”, I think there are definitely some disruptive issues between the two.
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