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.
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.
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