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The Cincinnati Post reports that a union-controlled pension fund with stock in Kroger Co. wants the supermarket chain to split the jobs of CEO and chairman, saying that the move would encourage a more independent board of directors. The proposal comes as the current board gets ready to appoint current CEO David Dillon to the additional role of chairman on June 24, coinciding with the retirement of Joseph Pichler from the chairmanship.

The proposal is non-binding and does not seem to have much chance to being passed, though the US Securities and Exchange Commission reportedly said that the union has a right to make the proposal and have it discussed by shareholders attending its annual meeting.

The $25 billion pension fund holds close to $785,000 worth of outstanding shares on behalf of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada.
KC's View:
We're not sure that Kroger or Dillon have done anything to deserve this. But we suspect that a lot of companies are going to face similar proposals, especially in a post-Enron/Tyco environment. Just look what happened to Disney's Michael Eisner.