STORM2K

WINSTON-SALEM, N.C. - Krispy Kreme Doughnuts Inc.'s new chief executive — the turnaround specialist who led Enron Corp. for almost three years — will be paid $760 an hour, plus expenses, the company said Monday.

The Winston-Salem-based company last week forced out longtime CEO Scott Livengood and turned to Stephen F. Cooper to try to reverse problems that include sinking profits, a federal securities probe and allegations of corporate deceit.

If Cooper reverses Krispy Kreme's fortunes, his firm will be paid a "success fee" that is now being negotiated, the doughnut chain said in a filing with the Securities and Exchange Commission. Krispy Kreme did not define terms that would lead to that fee being paid.

Cooper, 58, is head of Kroll Zolfo Cooper LLC, the corporate recovery and advisory firm Krispy Kreme retained as its financial adviser and interim management consultant. Cooper has about 30 years of experience in rehabilitating troubled businesses, including Polaroid Corp., TWA, and Malden Mills Industries.

Cooper's partner at Kroll Zolfo Cooper, Stephen Panagos, 43, will be paid $695 an hour as president of Krispy Kreme, the company said.

The hourly rates are subject to adjustment semiannually and don't include reimbursement for "reasonable out-of-pocket expenses," Krispy Kreme said.

Cooper will remain as interim CEO of Enron and has said he plans to spend about half his time on Krispy Kreme.

Company shares fell 29 cents to close at $8.75 Monday on the New York Stock Exchange, 10 cents above their 52-week low and down from $39.99 last year.

http://news.yahoo.com/news?tmpl=story&c ... &printer=1

I know where I won't be buying my donuts anymore.....

nystate wrote:

I know where I won't be buying my donuts anymore.....

Why is that? CEOs of nearly every company are paid an outrageous amount...

depotoo wrote:you are right - people forget to look at the big picture some times. these guys are the ones that actually create a livelihood for so many!

southerngale wrote:Ixolib...will you also not be going to the movies or renting them? Many actors and actresses make a whole heck of a lot more money than that per year.

Ixolib wrote:

southerngale wrote:Ixolib...will you also not be going to the movies or renting them? Many actors and actresses make a whole heck of a lot more money than that per year.

I hear what you're saying... And you're right. Everything we consume or use comes from somewhere - a lot of which is from companies with ridiculously overpaid CEOs who don't truly give a $#*^%& about the line employees who give their all every day to make these companies successful.

But, actors are not running a company. They are nothing more than over-paid employees. Just another reason why I never watch any of those shows like the Oscars, etc...

What gripes me about corporate America, though, is the extreme differences in pay where the line staff is barely able to keep their lights turned on and their kids fed while the executives are living in lavish estates, buying fine cars and boats, vacationing every weekend in the Bahamas, and sending their kids to Ivy League schools.

The way I look at it; if the CEO decides to stay home today, the company will still have a successful day. But, if all the employees decided to stay home today, the result would be complete failure.

I guess I'm just miffed that (1) anyone can be paid $750/hour and (2) that those who are paid that much can still sleep at night while their employees are getting the long end of the shaft. It's not that I'm against people making a good paycheck, I'm just against the absolute extremes as evidenced by this Krispy Kreme report... Still think I'll stick with the local bakery (which, by the way, used to be Krispy Kreme back in the "good old" days!!).