Kroger CEO Rodney McMullen has received millions of dollars in pay raises and bonuses over the last few years, but the numbers seem to align with the company’s incentive packages.
The Cincinnati Business Courier broke down the numbers, which reveal McMullen took in $19 million in 2022 — a 6% increase from 2021’s $18 million. The Courier used Kroger’s proxy statement filed with the Securities and Exchange Commission.
Fueling the 2022 raise was an 18% increase in McMullen’s stock awards, where he was paid $10.4 million vs. $8.8 million in 2021.
Kroger, which is headquartered in Cincinnati, pays executives in stock via a plan that covers three-year periods. Kroger CFO Gary Millerchip, Chief Merchandising and Marketing Officer Stuart Aitken, Chief Information Officer Yael Cosset, and Chief People Officer Tim Massa all received raises based on stock awards — according to the Cincinnati Business Courier.
Kroger exceeded the three primary performance criteria in the three-year compensation plan mentioned above. In addition, the three-year plan that ended at the conclusion of 2022 came within 94% of targeted goals.
McMullen’s cash incentive in 2022 was $4.6 million, which is a modest decrease from the $4.9 million in 2021. Cash incentives come from Kroger’s identical store sales growth and operating profit. The grocer chief’s salary was $1.3 million and his stock rose almost 5% to $2.2 million.
“All other income” added another $1 million and was generated by dividends paid on stock McMullen was awarded by the company.
The median pay for the average Kroger worker went up 6% to $28,644 in 2022, which is identical to McMullen’s.
“Kroger is committed to providing opportunities for all associates to grow their careers,” Kroger said in an emailed statement to Supermarket News. “When developing our world-class comprehensive benefits package, we consider holistically what our associates need to thrive at work and at home. Additionally, we continue to raise wages. Since 2018, we invested an incremental $1.9 billion in wages and comprehensive benefits, increasing our average hourly rate by more than 33%. Kroger will continue to build on this record with our proposed merger with Albertsons by investing an additional $1 billion to increase wages and expand our … benefits starting on day one following the transaction close.”
