Whole Foods’ Mackey pay valued at $653,671 in 2009
Austin, Texas Whole Foods Market CEO John Mackey’s compensation grew in 2009 according to a report by the Associated Press, but donated the gains to a farm-animal welfare group, standing by his commitment to keep his pay low.
Mackey voluntarily cut his salary to $1 in 2007 as the company entered a turnaround effort. He also elected to forgo earning any future cash compensation, stock awards or other options awards.
According to a document filed with the Securities and Exchange Commission on Monday, Mackey’s compensation for the 2009 fiscal year was valued at $653,671, up from $33,831 in fiscal 2008.
The CEO’s salary remained at $1 and he received no bonus, perks or stock options, as in the prior year.
Mackey’s only other compensation in 2009 was $653,670, mainly the balance from a previous incentive bonus plan that was frozen when he reduced his salary. The $607,800 balance was paid to him during the year and he subsequently donated the after-tax proceeds of $379,636 to the Global Animal Partnership, a nonprofit organization that works to improve the lives of farm animals.
Tiny Target coming soon
Before Target can experiment with a small-format store in the range of 60,000 to 100,000 square feet the company plans to carry out a different type of experiment intended to asses the concept’s viability. Three existing stores at undisclosed locations on the West coast, the Midwest and the Northeast will have their assortments pared by 50% in order to gauge consumer reaction to a streamlined product offering of a smaller store.
“We’ve made great progress in our efforts at SKU rationalization across our stores, reducing SKU’s by 10%, and this test is an effort to better understand how we can maximize the convenience and performance of a smaller urban format,” said Target chairman, CEO and president Gregg Steinhafel. The company didn’t say where or when the small stores would open, only that the experiment would take place in a handful of markets during the next several years.
The color of redemption
Target added four-color capability to its receipt marketing program and experienced a significant, but unspecified, lift in redemption compared with its earlier program, which relied on black-and-white printing technology. In addition to increasing redemption rates, the program is persuading customers to shop other areas of the stores. Now, the retailer is putting coupons in the hands of more shoppers, as it has added functionality that lets customers download and redeem coupons using their mobile phones.
Retailers have been talking about consumers increased usage of coupons for more than the past year, so it is not a big surprise then that data out this week shows that redemption activity was up last year. What is surprising is the magnitude of the increase, as there were 3.3 billion coupons redeemed last year, a 27% increase from the prior year when 2.6 billion coupons were redeemed, according to Inmar, the nation’s leading promotion transaction settlement provider. The surge in redemption activity was made possible by the fact that CPG manufacturers relied extensively on coupons, issuing 367 billion of them, as a means to maintain sales volumes as consumers were included to purchase store-brand alternatives.