The Key To Retail Success: Underpaid Executives
By George Anderson
For a retail grocery chain as successful as Publix Super Markets, it sure doesn’t pay its top executives very well. At least not when you compare the salaries and bonuses the Publix execs take home to what others in less successful businesses are making.
David Livingston, principal of DJL Research and a member of the RetailWire BrainTrust told The Ledger, “It’s (Publix executive’s compensation) like nothing, compared to other big chains.”
“Look at what Winn-Dixie’s paying — and they’re bankrupt. I would say that considering how successful Publix is, those five executive packages are extremely low. That’s not to say these guys don’t deserve every single penny they get. And, they’re not hurting; a lot of compensation comes in the value of their stock.”
According to The Ledger, the five highest-paid executives at Publix made between $369,217 and $713,931 in combined salaries and bonuses last year. The highest paid was Publix chief executive Charles H. Jenkins.
Moderator’s Comment: Is there a connection between what top executives are paid and how well companies perform? Do employees work harder for execs who
have pay packages that are seen as less extravagant?
Publix is not the only shining light of a retailer that pays its top executives modest (comparatively speaking) salaries and bonuses when compared to the
company’s rank and file. Costco has become for many the poster child of responsible compensation packages. –
George Anderson – Moderator