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Retention bonuses set for Rite Aid execs if Albertsons deal falls through

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John Standley is chairman and CEO of Cumberland County-based Rite Aid Corp.
John Standley is chairman and CEO of Cumberland County-based Rite Aid Corp. - (Photo / )

The odds are good that Rite Aid Corp. and Albertsons Cos. will complete a planned $24 billion merger this summer.

And after the Cumberland County-based drugstore chain and Idaho-based supermarket chain complete the deal, Rite Aid chairman and CEO John Standley is expected to lead the new parent company, which would be known as Albertsons Cos. Inc.

However, if shareholders reject the merger, Standley and other top Rite Aid executives are still poised to receive a retention bonus on top of their regular compensation, according to an amended annual report filed by the company on Friday.

By not being appointed CEO of the new company, Standley could earn a retention payment of $3 million. His total compensation for fiscal year 2018, which ended March 3, was $9.3 million, according to the annual report.

Rite Aid also set retention payments for four other executives under Standley. Collectively, those payments total about $2.9 million. Kermit Crawford, the company's president and COO, could get $1 million; Darren Karst, senior executive vice president, CFO and chief administrative officer, could get $830,250; Bryan Everett, COO of Rite Aid Stores, could get $600,000; and Jocelyn Konrad, executive vice president of pharmacy, could get $450,000. 

Crawford's total compensation last year was $5.4 million, while Karst earned nearly $4 million. Everett finished at nearly $3 million and Konrad received $1.4 million. In addition to base salaries, total compensation for executives includes annual stock awards, cash incentive bonuses and retirement benefits, as well as other compensation such as automobile allowances.

A Rite Aid spokeswoman did not immediately respond to questions about the possible retention payments and whether the company would be at risk of losing its top executives without those agreements.

In its annual report, Rite Aid said the retention agreements were put in place this year to improve employee retention and promote corporate performance amidst "significant volatility and uncertainty related to restructuring the company." Much of that uncertainty was driven by the prolonged Walgreens merger attempt, which took nearly two years, and the separate store deal with Walgreens that followed the failed merger.

Rite Aid has not yet set a date for a special meeting of shareholders to vote on the Albertsons merger. Company officials have said they expect the meeting will occur in July.

The merger would combine about 2,600 Rite Aid stores with about 2,300 stores Albertsons owns across the United States.

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Jason Scott

Jason Scott

Jason Scott covers state government, real estate and construction, media and marketing, and Dauphin County. Have a tip or question for him? Email him at jscott@cpbj.com. Follow him on Twitter, @JScottJournal. Circle Jason Scott on .

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Bobbyd July 30, 2018 3:09 pm

1 More thing U must vote NO and Fire the Board

Bobbyd July 30, 2018 3:05 pm

These 5 clowns have no share holders interests here !!!!!! these 5 scumbags care only for themselves. This Standley dude cannot remain in charge as a matter of fact just clean house.

LukeWarm July 10, 2018 2:42 pm

Another plea today for Rite Aid shareholders to bend over! I hope the fiduciaries uphold their duty and vote against this merger.

Danny Keener June 11, 2018 2:12 pm

The current CEO & BOD at Rite Aid are among the worst corporate governance I have see. Only Enron comes to mind as having worse management. Current Rite Aid management have not earned retention bonuses; what they have done is likely criminal in nature and if not, certainly immoral. The management is not royalty and should not be treated as such at shareholders expense. They are one and all reprehensible,incompetent and morally bankrupt. And I am being generous with that description.

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RPh June 9, 2018 1:28 pm

So, Fiscal year ended and NO raises for existing employees while management gets 3 - 36% raises--this is just base, not including bonuses. Employees medical insurance costs increase 6% and cost of living increases but nothing for employees. THIS demonstrates how much this management team values their employees! Vote NO for Albertsons merger.

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Criminal Minds June 5, 2018 5:40 pm

John Stanley and his crew are skumbags!!!!!!

LukeWarm June 4, 2018 5:26 pm

Board of directors should be fired! What a sham!

Corporate Thieves June 4, 2018 4:18 pm

John Standley and his Team are destroying Rite Aid while increasing their compensation! Greed and Corruption means money for them and losses for the shareholders!