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More than enough Mallomars…

mars.jpegSo we’ve been reading for years that grocery chains are in trouble, squeezed by Wal-Mart (WMT) on one end and Whole Foods (WFMI) on the other. Yet this employment agreement filed by Supervalu (SVU) late yesterday in an 8-K seems to tell a different story.

According to the agreement, Kevin Tripp, who joined Supervalu as a result of the Albertson’s (ABS) deal, will receive $2.6 million if he sticks around for the next two years. That’s about five times his annual salary of $525K. But that’s not all. As the summary to the 8-K notes, Tripp also received unspecified "change in control" payments from Albertson’s. How much were those worth? You have to flip back to the Q filed on May 31 and look at this generic agreement that covers all Albertson’s executive vps. Under that agreement, Tripp collected three times salary and target bonus. And while Tripp’s salary isn’t listed in the summary comp chart that Albertson’s filed in May 2005, it’s fair to assume that the salary and bonus were each around $500K. So that works out to another $3 million, give or take, or enough to buy roughly 1.4 million boxes of Mallomars!