The Board had a few things to say about profit sharing after voting down ATD’s proposal for a 20% contribution.
Board voted to continue to make a contribution to all eligible Market Basket associates of the profit sharing plan at a level that is an increase over the prior year and at a percentage of eligible compensation (15%).
In an effort to further reward associates, the Board has begun a process for selecting nationally recognized investment advisors to professionally manage the funds in the profit sharing plan and ensure a conservative, yet better return (while avoiding the mistakes made by the prior plan Trustees that required a $46 million “bailout” from the Company for a bad investment decision)
Of course it is an increase over last year, just like it has been an increase over the year before that and so on since 1963. This is a play on words, with more eligible associates and associates making more than last year the amount increases naturally so please BOD don’t be trying to take credit for that. The bottom line is ATD recommended a 20% contribution and you cut it back to 15% which means you took 5% out of our wallets and put it in the shareholders pockets.
“in an effort to further reward associates” please BOD don’t do us any favors. We don’t need you to waste any more of our company’s money hiring nationally recognized investment advisors to fix something that isn’t broken. “ensure a conservative, yet better return” Am I reading this wrong or are you guaranteeing a better return? Because I am only at a fifth grade level but that’s sure the way this reads to me. “while avoiding the mistakes made by the prior plan Trustees that required a $46 million “bailout”from the Company for a bad investment decision”. The BOD is blaming the Trustees for the global economic meltdown that happened in 2008? Are they for real? These people think we are a bunch of idiots. We are well aware and so is the BOD that Goldman Sachs made poor investing decisions that caused the plan to lose $46 million and in fact DSM sued them. That case recently wrapped up and we are awaiting the court’s decision. The restorative payment was approved by the BOD at the time as it would have to be and then vetted by a court. The only directors that did not support putting the $46 million back in as a restorative payment, no surprise here, the A directors that represent Arthur S.
ATD asked the Board to make a restorative payment because he didn’t want his PEOPLE hurt by poor advice from Goldman Sachs. What the BOD is not telling you is that ASD is suing the Company to have this $46 million taken from associates and put into shareholder pockets. This BOD likes to lay blame on anyone it can for their mistakes and take credit for everything that other people do. The reality is that the current BOD of DSM is a dysfunctional group led by a sociopath.