Albertsons Executives Set to Receive Millions if Kroger Merger is Approved

Albertsons is moving forward with its proposed $24.6 billion acquisition by Kroger, despite facing legal challenges from the Federal Trade Commission and several state attorneys general. As part of its efforts to finalize the merger, Albertsons is incentivizing its executives with substantial retention bonuses.

In a recent SEC proxy filing, Albertsons revealed that its newly appointed general counsel, Thomas Moriarty, earned a total of $4.7 million in compensation during fiscal year 2023. This includes a salary of $657,692, along with stock and bonuses totaling $3.5 million and $584,221, respectively.

CEO Vivek Sankaran earned $15.1 million last year, with the majority in stock awards, while other top executives also received significant compensation. For instance, Sharon McCollam (President and CFO) earned $6.6 million, and Susan Morris (Executive VP and COO) earned $6.5 million.

Additionally, the filing outlined retention incentives, or “service retention incentive” (SRI) awards, that executives could receive if the merger is approved. Moriarty stands to gain $2.7 million, McCollam and Morris each $4 million, while Anuj Dhanda (EVP and CTO) is set to receive $1 million. Interestingly, no retention package has been proposed for CEO Sankaran.

These figures come amid a contentious merger process, but they emphasize the substantial personal stakes for the company’s leadership if the Kroger-Albertsons deal proceeds.