Business

CEO Pay Watch: Craig Herkert, former Supervalu CEO

June 4, 2013 at 1:46AM

Supervalu CEO Craig R. Herkert (The Minnesota Star Tribune)

CEO Pay Watch Supervalu Inc.

Craig Herkert, former president and CEO

Total compensation: $3,789,922 for the year ended Feb. 28

Salary: $374,711

Other compensation: $2,904,239

Value realized on vesting shares: $510,972

New stock options: 845,821

Total fiscal 2013 return to shareholders: -38.5 percent

Note: Herkert was terminated on July 28. His salary is from a partial year, and his other compensation includes $2.8 million in severance pay.

Board member Wayne Sales stepped in as interim CEO and began a strategic review of the company. Sales' compensation for the partial year was $2,540,246 and included $865,385 in salary, a $630,000 signing bonus and a $1 million incentive bonus. In addition he was awarded $2.7 million worth of restricted stock.

Sales helped broker a deal in which Cerebrus Capital Management paid $3.3 billion for portions of Supervalu including the Albertson's supermarket chain. As part of that deal Cerebrus became a minority shareholder of Supervalu and a new CEO, Sam Duncan, was named.

A change-of-control agreement meant that Sales was eligible for approximately $12.8 million in golden-parachute payments. Sales later agreed to waive $2.7 million of the change-of-control agreements.

Duncan earned $86,538 in salary, a $500,000 signing bonus, and was awarded 1.5 million stock options with a grant day value of $2.1 million. Duncan's employment agreement calls for an annual salary of $1.5 million.

Patrick Kennedy

Sam Duncan , Supervalu’s incoming CEO. (The Minnesota Star Tribune)