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Market Basket president decries profit-sharing changes

The embattled president of the Market Basket chain ripped the company’s board of directors for making changes to the company’s profit sharing plan.

Jon Springer, Executive Editor

May 1, 2014

2 Min Read
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The embattled president of the Market Basket chain ripped the company’s board of directors for making changes to the company’s profit sharing plan.

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In a letter to board chairman Keith Cowan this week, Arthur T. Demoulas denounced the board for having replaced the plan’s company-based trustees with a New York investment advisory firm, and for considering what he termed “dramatic changes” to the plan. Demoulas also slammed the board for rejecting his recommendation to increase the contribution amount last year, among other charges.

Demoulas shared the letter with Market Basket employees, who have rallied to his defense ever since the president lost majority control of the board to a faction controlled by his estranged cousin, Arthus S. Demoulas. That group replaced company-based plan trustees with New York investment advisor Evercore shortly after taking control of the board last summer.

Evercore is expected to replace a single fund benefiting all employees with a menu of options for participating individuals, a process Demoulas charged “would create conflict amongst participants,” and erode company culture.

The board in a statement said the appointment of Evercore “could improve investment performance and professionally manage the funds.” The board also said management representatives had declined to participate in committee meetings with the new firm.

 

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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