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Supervalu’s CEO Herkert earned $10.8 million

Supervalu Inc. CEO and President Craig Herkert received compensation valued at $10.8 million in his first year at the company.
The grocery chain appointed Herkert, a former Wal-Mart Stores Inc. executive as its leader in May. He replaced Jeff Noddle, 62, a more than 30-year employee at Supervalu who had served as its CEO since 2001. Noddle stayed on as an executive chairman of the Minneapolis-based company, which owns all Albertsons stores in Idaho.
Herkert’s 2009 pay package was significantly larger than Noddle’s during his last year as CEO, as he failed to earn a performance-based bonus and received a package worth $4.1 million.
Herkert received a salary of $653,846 and a performance-based cash bonus of $398,183. He received $956,325 in other pay, including $587,000 for costs associated with moving to Minnesota and joining the company.
The bulk of his pay package came from stock options and restricted stock worth nearly $8.9 million then they were granted.
The Associated Press formula is designed to isolate the value the company’s board placed on the executive’s total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don’t include changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the Securities and Exchange Commission.
Supervalu is trying to turn around its business with Herkert at the helm and reported that it moved to a profit in its most recent fiscal year.

About The Associated Press