.........On March 6, 2014, Safeway’s board of directors, adopted and approved the Safeway Inc. Retention Bonus Plan (the “ Retention Plan ”), effective March 6, 2014, for certain of Safeway’s key employees, including each of the named executive officers that are Executive Vice Presidents.
The Retention Plan provides for the payment of a cash retention bonus on each of March 6, 2015 and March 6, 2016, subject to remaining employed through each such date, in an amount equal to a percentage of the participant’s annual base salary as in effect on March 6, 2014, in an amount ranging from 25% to 37.5%. For Executive Vice Presidents participating in the Retention Plan, each bonus payment shall be equal to 37.5% of their annual base salary. Notwithstanding the foregoing, in the event a participant’s employment with Safeway is terminated without cause or for good reason, each as defined in the Retention Plan, the participant shall be entitled to receive any unpaid cash retention bonus amounts in a lump sum as soon as practicable following termination.........
It would have been better if Kroger could picked up Nor Cal, The crown jewel of all the Safeway divisions, but if Albertsons management gets ahold of this division , I'm afraid we will have a repeat of the Albertson buyout of Luckys and the Safeway brand will be ruined forever!
Define lose money! At the moment the Dow is down 187 points and Safeway is up 98 cents at $38.43. At what point do you think the shareholders would not be losing money? Still holding from the all time high in 1999 ? I would bet there is very few people that are still holding the stock at that price, but it's possible!
Stock is purchased through the NYSE, shareholders will receive the purchase price. You should be asking , what is the company going to look like when the company that purchased the shares eventually takes Safeway public. My guess, many stores will be sold or closed, real estate assets redeployed and anything that is of value , turned into cash.
Liabilities for pensions will be annuitized through some insurance vehicle. There will not be a need for store support or administration of the size that Safeway now has. The Safeway name will remain intact, especially in Nor Cal.
Albertsons destroyed the Lucky brand, that only took a few years! The Lucky brand has been resurrected but never returned to its former glory.
The last LBO in the 90's made the Hedge Fund 7 billion. I don't think that this will be the case this time.
Too bad they didn't go for a buyout when the stock was $15! I agree with the buy out, $42-$45. Safeway NorCal will survive, it's the big money maker. Corporate help will be hosed! Most of the 2,000 workers will be eliminated, interesting to be a fly on the wall in the coming weeks!