Attention Shoppers: Executive Compensation at Kroger, Safeway, Costco and Whole Foods

1.

Kroger:

Name of CEO:
David Dillon

Vision:
To remain the largest and best grocery chain in the United States.

Mission
The Kroger Company Mission Statement: "Our mission is to be a leader in the distribution and merchandising of food, pharmacy, health and personal care items, seasonal merchandise, and related products and services."

Value:
To accomplish its mission, Kroger has six values provide guidance to its employees about how they do what they do every day. Those values are: Honesty - Doing the right things, telling the truth. Integrity - Living our values in all we do, unified approach to how we do business and treat each other. Respect for Others - Valuing opinions, property and perspectives of others. Diversity - Reflecting a workplace that includes a variety of people from different backgrounds and cultures, diversity of opinions and thoughts. Safety - Watching out for others, being secure and safe in your workplace.

Inclusion - Your voice matters, working together works, encouraging everyones involvement, being the best person you can be. David Dillon was CEO of Kroger Company. Year 2004 2003 2000 1995 1986-1995 1983 1976 job David Dillon was elected chairman of the board of Kroger chief executive Officer president and chief operating officer He was president and Served on the board of directors He was chief operating officer for seven Years Merged Dillon Co. with Kroger, David Dillon managed Dillon company joining the Dillons Company

David earned a bachelors degree in Business at the University of Kansas and a law degree at Southern Methodist University. Dave is a member of the board of directors of DIRECTV. He also serves on the Board of Trustees for the University of Cincinnati Foundation, the Board of Trustees for the Urban League of Greater Cincinnati, the Board of Trustees for the University of Kansas Endowment, the Board of Trustees for Bethesda, Inc., and the Board of Directors for Catalyst. David Dillon is committed to increasing Krogers minority supplier development activities as part of its business strategy. Each of Krogers divisions and buying groups has supplier diversity champions. Recent supplier development activities have paid off in a $40 million contract for Hightowers Petroleum and a $12 million contract for Paper works. He served in a variety of leadership roles. Mr. Dillon has more than 35 years of experience in the consumer products business.

 Mr. Dillon was interested to hired new people. Mr. Dillon said it is necessary for companies to have "new blood coming in" to keep up with the changing times. "The new era of supermarkets began 10 years ago, when people started buying food in lots of places, not just supermarkets," Mr. Dillon said. "We caught it pretty early, but most other supermarkets did not. During his first year as CEO, he step up a joint venture with United Kingdom-based data analysis firm Dunnhumby to create Cincinnati-based Dunnhumby USA. This gave Kroger entry into the world of "big data" before it was even called big data. Kroger and Dunnhumby used shopper cards to harvest vast amounts of consumer data, allowing Kroger to pinpoint shopper habits and trends in a way never before seen in the grocery industry. Its competitors are still trying to catch up. Dillon's track record will be a tremendous challenge. David Dillon is a great leader. Hes also a great teacher, Flickinger said. David Dillon is the best CEO Kroger has had since Barney Kroger retired, Flickinger said. Robert Beyer, Kroger's Lead Director, said, "On behalf of the Board, I thank Dave Dillon for an extraordinary job as CEO and throughout his distinguished career at Kroger. Under his leadership, the company has consistently delivered value for shareholders, customers, and associates. The Board has planned carefully for this leadership succession." Under Dillons leadership at Kroger, the company continued a strategy of expanding its middle position. Provides discount grocery at low rate Its further expand its fresh foods and produce department and add an assortment of prepare meals. Increase the frequency of customer visits

2: costco
Name of CEO:
James Senegal

Vision:
To continually provide our members with quality of goods and services at the lowest possible price control inventory

Mission

Costco's mission is to continually provide our members with quality goods and services at the lowest possible prices. In order to achieve our mission we will conduct our business with the following Code of Ethics in mind: Obey the law Take care of our member Take care of our employees Respect our vendors

Value:
1. Obey the law. 2. Take care of our members. 3. Take care of our employees. 4. Respect our suppliers.

Strategy:
Corporate Strategy Direct Buying Relationship Ensure an efficient and strong supply chain management. Helps improve demand-forecasting accuracy. lower inventory costs Contributes to the development of better staffing plans lower personal costs Improved customer service High quality products &lower prices Sell more volume Improves profitability Members only Members are more loyal shoppers Helps bargaining power Protect integrity

James Sinegal was the co-founder of Costco discount warehouse stores in 1983, and he has been the retail chains leader and CEO ever since Sinegal has kept the company strong against stiff competition from companies like Wal-Mart and BJs Wholesale with long-term strategic planning, and solid retail operations tactics Senegals Strategy: operating low cost and therefore further reduce price His strategy and leadership transformed his store into one of the most successful retailers in the world.

 Jim has done a very good job in balancing the interests of the shareholders, the employees, the customers and the managers," Price told the Times. "Most companies tilt too much one way or the other." Introduced the technology in our business He introduced discount concept in Costco He introduced member system in Costco He introduced marketing concept in Costc

3: Safeway
Name of CEO:
Steven Burd

Vision:

Our vision means us: safely provide energy products vital to sustainable economic progress and human development throughout the world; are people and an organization with superior capabilities and commitment; are the partner of choice; earn the admiration of all our stakeholders investors, customers, host governments, local communities and our employees not only for the goals we achieve but how we achieve them; deliver world-class performance.

Mission
"We earn the loyalty of the people we serve by first anticipating, then fulfilling their needs with our superior-quality products, a unique shopping experience, customer-focused service and continuous innovation, while generating long-term profitable growth for our shareholders."

Value:

Our

company's foundation is built on our values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment and benefit the communities where we work. Integrity - We are honest with others and ourselves... Trust - We trust, respect and support each other... Partnership - We have an unwavering commitment to being a good partner... Diversity - We learn from and respect the cultures in which we work... Ingenuity - We seek new opportunities and out-of-the-ordinary solutions... Protecting People and the Environment - We place the highest priority on the health and safety of our workforce and protection of our assets and the environment... High Performance - We are committed to excellence in everything we do, and we strive to continually improve... Steven Burd was CEO of Safeway Company. Year job He served as the Executive Chairman at 1998 Safeway Mr. Burd served as the Chief Executive 1993 Officer of Safeway He served as the President of Safeway Inc. 1992 Mr. Burd served as Chief Operating 1987 Officer of Safeway Burd spearheaded the innovative "Healthy Measures" insurance plan offered to Safeway employees In this plan, employees get discounts on their health insurance if they show qualified performance in four "tests": tobacco usage, healthy weight, blood pressure and cholesterol levels Mr. Burd will help with the search and continue to assist the company

 Burd is credited with establishing a culture of thrift and capital discipline in Safeway, creating a customer service program, developing the "Lifestyle" store format, introducing a level of quality in perishable products that had never been seen in food retailing, and forming a leading prepaid payment network that has become one of the largest distributors of gift cards in the world Burd also accelerated the company's efforts in charitable giving and sustainability. During his tenure, Safeway raised more than $2 billion for charities, including over $200 million for cancer research Safeway buys Chicago's Dominick's Supermarkets for $1.2 billion, under Burd Safeway buys Carr-Gottstein Foods, Alaska's largest retailer, for $110 million, under Burd Safeway buys Genuardi's Family Markets to strengthen its East Coast presence, under Burd UFCW launches a strike at Safeway's Southern California stores over cuts in health care and pension benefits. The strike lasts until February 2004, under Burd Safeway introduces the O Organics line to compete with the rising popularity of natural grocers such as Whole Foods, under Burd Safeway introduces health and wellness line Eating Right, under Burd Safeway launches Just for U in Northern California. The digital coupon loyalty program is on pace for 6 million registered customers by the end of the year, under Burd Safeway rolls out a gas rewards program with Chevron in Northern California, under Burd

4: Whole foods

Name of CEO:
John Mackey

Vision:
Vision Statement is a sentence or short paragraph providing a broad, aspiration image of the future.

Mission

This mission explanation includes... "Whole Foods - We obtain our products locally and from all over the world, often from small, uniquely dedicated food artisans. Whole People - We recruit the best people we can to become part of our team. We empower them to make their own decisions, creating a respectful workplace where people are treated fairly and are highly motivated to succeed. Whole Planet - We recognize the connection between our lives, our communities and the environment."

Value:
Selling the highest quality natural and organic product available Satisfying, delighting and nourishing our customer

Whole food market is a dynamic leader in the quality food business. We are a mission-driven company that aims to the set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state

of mind at whole food market

Supporting team member happiness and excellence Creating wealth through profit and growth Serving and supporting our local and global communities Creating ongoing win-win partnerships with our suppliers Promoting the health of our stakeholders through healthy eating education Practicing and advancing our environmental stewardship

Strategy
Whole Foods implemented several strategies to deal with the tough economic times (Whole Foods, 2008). These included: cutting in half the planned new store openings (30 to 15); cut discretionary spending by 50 percent; suspended their cash dividend; increased the range of lower-priced items;

 strengthened their value image;

John Mackey, co-founder and co-CEO of Whole Foods Market, has led the natural and organic grocer as it has grown from a single store in Austin, Texas, founded in 1978, to an $11 billion Fortune 300 company, and a top U.S. supermarket with more than 340 stores and 70,000 Team Members worldwide. Mackey has been the visionary for many successful programs at the core of Whole Foods Market.

He founded Whole Planet Foundation to help end poverty in developing nations; he launched the Local Producer Loan Program to
help local farmers and food producers expand their businesses; he created the Global Animal Partnership to set standards for humane farm animal treatment; and he laid the foundation for the companys Health Starts Here initiative, which encourages health and wellness among customers and Team Members. Mackey co-founded the Conscious Capitalism Movement to challenge business leaders to rethink why their organizations exist, and to acknowledge their roles in the interdependent global marketplace. Expand at a modest pace, opening store in Taxes at a rate of approximately one per years Mackey began to chater a more aggressive expansion strategy and took the company public to raise capital for growth Acquired most reginol natural food store chain, under Mackey

Dillons as CEO revenue

tenure Burds tenure as Sinegals tenure Mackeys tenure CEO as CEO as CEO $15.2 billion $40.2 billion $762 million $59.0 billion $120 million to $5.6 billion

$57.8 billion $66.1 billion

to

to

to

operating income

net income

$1.4 $441 $5.6 $4.6 billion to $2.2 million to $1.6 million to $1.6 million billion billion billion $319 million $315 $123 $3.6 $3.1 million to $1.1 million to $ million to $1.6 million billion 871 million billion $204 million

to

to

Job Evaluation of CEO,s (Attention shoppers case study)

1. Salient Features of Grocery Industry
a. Highly competitive and Mature Industry.

b. c. d. e.

High Competition. Low gross and Net Margins. Effective strategies required for earning profits Diffraction was required in following aspects:(1). Store format and location (2). Product Mix (3). Ancillary Services (4). Quality of Customer Services (5). Innovation and Creativity

S/NO

2. Job Evaluation of CEO,s and Detailed Comparison Details Kroger Safe Way
CEO Established in Market Position Number of Stores
David Dillon Steven Burd

Costco
James Senegal 1983 458

Whole Food
John Mackey

1 2 3 4

1883 2nd 2469

(2006)

1900 4th (2006) 1761

1980 186

5 6

Net Income Vision

1115 M
To remain the largest and best grocery chain in the United States

871 M To continually provide our members with quality of goods and services at the lowest possible price control inventory Provide our members with quality goods and services at the lowest possible prices. In order to achieve our mission we will conduct our business with the following Code of Ethics in mind: Increasing sales Holding down Cost Reducing Debt Loan Redesigning Store Format Wide Verity of Fresh & Prepared Food Natural & Organic Food Ancillary Services like Gift Cards Membership Cards $ 1,332,250 Cash Bonus Stock Option Retirement Plan, Other Benefits Use Of

1103 M Safely provide energy products vital to sustainable economic progress and human development throughout the world;
"We

204 M

Mission

"Our mission is to be a leader in the distribution and merchandising of food, pharmacy, health and personal care items, seasonal merchandise, and related products and services." Product Mix Food, Gas, Prepared meal, Drugs, Jewelry Backward Integration 42 Food Processing Plants Vertical Integration Purchase of food chains Quality Assurance High Expansion Rate Loyalty Cards

earn the loyalty of the people we serve by first anticipating, then fulfilling their needs with our superior-quality products, a unique shopping experience, continuous innovation, while generating long-term profitable growth for our shareholders."

Quality is a state of mind at whole food market

Strategies

Joint Ventures Product Mix Electronics, Office Supplies, Jewelry, Food, Grocery, Gas, Drugs, Optical One Hr Photo Center High Volume Sales Low Margins Limited Verity Membership Cards/ Discounts $ 350,000 Cash Bonus, Stock Option Other Benefits Life Insurance, Health Plan,

Modest Expansion Decentralized Decision Making Premium Quality Premium Customers Niche Marketing Health conscious Customers Organic/ Pure Food

9 10

Salary (2006) Other Rewards

$ 1,155,991 Bonus Performance Based, Long Term Stock Option Retirement Plan

$ 287,600 Cash Bonus, Stock Option

Perquisites

Company Air Craft, Home Security System, Insurance

Vehicle Allowance, Pension Plan, Deferred Compensation Plan

11 12 13 14 15 16