Smithfield Foods' management reaps $85M prize
The reward comes after the pork processor's performance lagged rivals' for years.
Best of all for them, they will be able to keep their jobs after the sale is completed, which looks likely to occur unless other bidders emerge.
The reward certainly can't be viewed as pay for performance. According to Bloomberg News, Smithfield posted a negative return of 18% over the past five years, the second-worst performance of any U.S. food company with annual sales of $10 billion or more.
Bloomberg notes that among those potentially getting windfalls are CEO C. Larry Pope, who owns stock valued at $25.4 million, and Executive Vice President Joseph W. Luter IV, a descendant of the family that founded the company. He owns stock valued at $21.1 million and would also get $1.1 million in payments because of his options. Luter's father, Chairman Joseph W. Luter II, owns $30 million worth of stock. He preceded Pope as CEO.
One major shareholder, Continental Grain, had earlier this year urged the Smithfield, Va., company to consider strategic changes, including breaking itself up. Continental complained that Smithfield had paid no cash dividends for seven years while rivals Hormel Foods (HRL) and Tyson Foods (TSN) paid hundreds of millions of dollars. According to Dealbook, closely held Continental hasn't decided if it will support Shuanghui's bid and "may be waiting to see if Smithfield attracts a counter-offer."
In an interview with Dealbook, Pope is quoted as saying that Shuanghui didn't want Smithfield to be broken up. He also predicted that Continental Grain would back the deal because it's in the best interest of shareholders. Smithfield declined to comment, and Continental couldn't immediately be reached.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
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And does anybody have to ask, "What's wrong with America"?
And why the Rich or even Corporations, are becoming DESPISED more every day ?
What a cool way to make millions, do a piss poor job, run a company into the ground...
And walk away with big fat-azzed grin on your smuck-face.
These guys can go screw themselves, selling pigs feet as hamhocks.
No Smithfield, No Morrell, No Armour, all the same company, all the same ripoffs.
Smithfield products are pricier than comparable companies offerings. Coupled with the excessive pay and benefits for the upper management, it's no wonder they haven't been making a profit for the shareholders. I've never been able to afford their products....
More greed being exposed???
There are still a few, small slaughter or butcher houses around, probably depends where you live??
I know of two, used to be three. Near us and we have hogs and deer done about every year..
But correctly there were 5, about 10-15 years ago and they are dwindling.
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Reports say the generous benefactor behind the huge gratuities is a former PayPal executive.
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