Something to fall back on…

May 25, 2004

Last year, Rite-Aid (RAD) Chairman Robert Miller announced that he was stepping down as CEO, but would remain chairman of the company until the 2005 board meeting. But Rite-Aid’s recent proxy shows that Miller, 60, received the same amount of salary in 2003 — $1.24 million –as he did in 2002, even though he stepped down as CEO last June 25. Theoretically, at least, that should have reduced Miller’s salary sharply, particularly since as chairman, he’s not required to be at the company every day. Indeed, the proxy notes that the company paid $16,913 in moving expenses for Miller last year as well as $87,697 for personal use of the corporate jet, perhaps to scout out retirement homes in a warmer climate than Camp Hill, Pa., where Rite-Aid is based. Under Miller’s contract his salary dropped to a mere $350,000 as of March 1, which represents a pretty sharp pay cut. Good thing he has a hefty severance payment from his prior employer, Kroger (KR), to fall back on. In December, according to the proxy, Kroger lost a dispute with Miller over $6 million in severance pay he claimed he was owed.

Leave a Reply

You must be logged in to post a comment.