A Letter from William Marsden (Part Two)

This afternoon, Mr. Marsden sent a letter to all associates in answer to the Board’s decisions of yesterday. As always with Mr. Marsden, his words speak clearly for themselves.

To: Market Basket Associates

From: William F. Marsden

Date: November 26, 2013

As promised, I am making you aware that the Board of Directors met on November 25, 2013 to vote on management’s proposals for a December bonus pool of $56 million for associates to share in and for a profit sharing contribution of 20% of eligible wages. The Board approved approximately $44 million of the $56 million requested for associates to share in and deferred making any decision on management’s recommendation for the $12 million difference from these two amounts. The Board also reconfirmed a 15% of eligible wage contribution to the Profit Sharing Plan, instead of the 20% recommended by management.

On behalf of associates, Arthur T. Demoulas strongly advocated to the Board that the associates were more than deserving of managements recommendation of these benefits because of their dedication, commitment, hard work and loyalty and due to the growth of our company with the investments in newer stores, expanding into new trading areas, all the while being challenged by significant competition and uncertainty.

The Board issued a rambling, mudslinging response to my letter to discredit Arthur T. Demoulas’ leadership. The Board wants you to believe that Arthur T. Demoulas did not adequately advocate for our associates, by calling the request untimely and unsubstantiated. The Board was timely notified by management beginning November 19, 2013 of the December bonus pool and profit sharing percentage recommendations and its reasoning supporting them. The Board’s response is an embarrassing attempt to disguise the fact that they do not support management and their recommendations for our associates’ benefits. The Board also claimed that my previous letter to associates was “misleading and riddled with errors”. All that was stated in my letter to associates was what management was recommending to the Board for associates to share in. My letter was respectful and did not take pot shots at anyone; it just accurately listed the facts.

Management believes in our associates and the culture of Demoulas Super Markets. We operate in an increasingly competitive environment, with all the competition lowering prices to attract customers. We know that a huge part of our success is protecting our customers from higher prices even when they are not looking. We invest in store improvements, upgrades and new locations to attract and keep loyal customers and it works well for us. The fact is that our profitability has remained stable and above industry standards and is a tremendous success, not a failure. Compare our prices to others…lower. Compare our profitability to others…higher. This is a recipe for success that management firmly believes must be fully shared with associates.

Keep up the great work and dedication.

Respectfully,

W.F. Marsden

Comments

  1. We believe in our CEO and know that he is doing all he can for us and this great company. The board is doing all they can to turn the associates against him. It will not work. The letter from Mr. Marsden was not misleading in any way and the board looks like fools for saying that. Thank you for all that you do day after day for all associates and this company.

  2. Looks like the BOD is doing everything it can including outright lies to discredit ATD and management. How much longer are we going to take this without speaking up? We need all Store Directors to become leaders within their own buildings, this is an attack on our Company

  3. It’s really a shame that the board is choosing this time to become so nasty. For years this has been both a difficult time(working tons of hours, missing lots of holiday parties with friends and family, ect…) . ATD and his father understand this and rewarded us every year without worry by giving us a very generous bonus. At my house this has allowed us to spoil our four kids and maybe even ourselves alittle . That usually makes up for LOST TIME! The board chooses now to attack our beloved company and CEO! REALLY! Things are already hard enough this time of year guys ,if you knew anything about our job , you would understand that. FROM MY FAMILY TO MR. ATD ,THANK YOU! , for going to bat for the little guy and making our Christmas happy again.

  4. God bless ATD and all he has done for my family. We work long and hard hours, and to be rewarded for this by means of bonus’s and a profit sharing plan makes it all worth it. ATD and his generosity help pay for my children to get a better education, and to get a better chance out in the world. They have, and for this I am forever greatfull to ATD.

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