Mark Gross Supervalu Inc.
Title: President and CEO
Total compensation: $1,211,238 for the year ended Feb. 25, 2017
Nonequity incentive pay: $191,072
Other compensation: $20,166
Total fiscal 2017 shareholder return: -23.3 percent
Note: Gross took over as president and CEO of the Eden Prairie-based food wholesale and retail company in February 2016. Gross, a grocery industry veteran, was most recently the founder and leader of the grocery industry consulting firm Surry Investment Advisors.
Gross’ compensation also included performance share units (PSU) that have a three-year performance period and a three-year vesting schedule. That award when granted was valued at $3.5 million. Whether he receives full value will depend on internal and external metrics including the company’s EBITDA growth and total shareholder return.
Gross’ annual cash incentive was based on the company’s adjusted EBITDA and other expense measures. Gross earned only 19 percent of the targeted award.
The annual incentive was complicated by the divestiture of Save-A-Lot, which was announced in the third quarter last year and closed in the fourth. Before the sale, executives did not meet the threshold level for an award but in the stub period that followed, and after certain adjustments, company performance was enough that executives earned a partial award for the year.
It may be easier to earn an annual incentive this fiscal year, though. For fiscal 2018, the compensation committee lowered the adjusted EBITDA threshold from 95 percent to 85 percent of the target amount.