Safeway CEO Steve Burd will not accept his bonus of $181,000, according to a filing with the Securities and Exchange Commission.
- KC's View:
They won't exactly need to throw a benefit for Burd. He gets an annual salary of $1 million, plus there are reports that he exercised stock options over the past year that earned him $13 million.
However, this seems at least a symbolic acknowledgement by Burd of Safeway's annual loss of $170 million, its drop in stock price, and the four-month strike in Southern California that plagued the company.
We're not sure, however, that Safeway investors should or will be assuaged. After all, how much money have they lost while Burd walks away with $14 million?
We live in an environment that, for better or worse, is highly unfriendly to CEOs who don't deliver immediate gratification to shareholders. Not accepting $181,000 may be Burd's way of saying "I feel your pain"…but from this perspective, the words sound hollow.