MONTVALE, N.J. — Sam Martin has accepted an offer of $1.2 million annually to remain as the chief executive officer of A&P upon its emergence from Chapter 11, court papers showed.
Martin — along with most of his current senior executive team — is set to remain in place as A&P exits Chapter 11 bankruptcy and continues as a private company with new owners. Martin will receive an annual salary of $1.2 million and agreed to a sign-on bonus of $720,000 to be paid by the company’s new owners. Martin will also participate in a long-term incentive plan that could earn him a share of up to 7.5% of the equity in the new company, as well as a short-term bonus plan.
The employment status of Jake Brace, the company’s current chief financial officer and its chief restructuring officer, remains subject to ongoing negotiations, A&P said.
Current senior executives Thomas O’Boyle (chief merchandising officer); Paul Hertz (chief operating officer); Christopher McGarry (chief legal officer) and Carter Knox (chief human resources officer) have also been retained and are likewise eligible for the long-term and short-term incentives as Martin.
Martin will also serve as one of seven members of the board of directors for the new company.
In a separate filing, the United Food and Commercial Workers union indicated it had designated Lou Giraurdo to serve on the board of directors of the new company. The UFCW was granted one board appointee who would not serve on behalf of, or take orders from, the union.
Giraurdo is a partner in a San Francisco law firm of Coblentz, Patch, Duffy & Bass and represents food and financial services firms in acquisitions and refinancings. He is also a co-founder and partner in GESD Capital Partners, a private equity firm with investments in several food and wine companies; a former CEO of Pacific Coast Baking Co.; and a former chairman of Pabst Brewing.
New owners Yucaipa Co., Mount Kellet Capital Management and Goldman Sachs were to appoint five board members. Yucaipa’s Ron Burkle will serve as chairman.
As reported previously, the judge this week approved A&P’s reorganization plan, and the company is expected to emerge from Chapter 11 shortly.