Krispy Kreme to Pay New CEO $760 an Hour

[southerngale]

No wonder their doughnuts cost more than anyone else's. lol

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

[Rainband]

Thats a lot of dough

[CaptinCrunch]

I'll make and sell donut's for that $$$

[Ixolib]

Yet another fine example of those at the top of corporate america taking it all for themselves. And his store workers - who make the donuts, sell them to the customer, and clean up the store and bathrooms - get paid a whopping $6.25/hr (+/-).

I'm sure that CEO has no idea what it's like to have to decide whether to buy bread or buy diapers (or neither!!) as he nears the end of HIS pay period...

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

[nystate]

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

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

[weatherlover427]

760 * 40 (# of hours in a regular work week) = $30,400

30400 * 52 (# of weeks in a year) = $1,580,800

$1,580,800 * 70% (for taxes taken out) = $1,106,560

Talk about a lot of money...

[rainstorm]

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

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

why is it outrageous? can you explain that? companies consist of stockholders. as a stockholder, i want a man or woman running that company that will make profits. further, if this man succeeds in turning around krispy kreme. then they can expand, and hire more people. here is the sad truth. 1 donut maker at kk isnt going to do much to help employ hundreds or thousands of workers. i work at bbw and i have no problem with the ceo making much more than i do.
lets take this a step further. we have an economic system where excellence is rewarded. business owners, and top ceo's create wealth and jobs for everyone. take away the incentive for wealth creation, and watch your own standard of living go down the tubes.

[depotoo]

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!

[Ixolib]

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!

What guys?? In the "big picture", this single individual is nothing and he personally does very little to "put people to work". He, like so many other top executives, is just an over-paid figure head. There is NOBODY that's valuable enough to be paid $760/hour - be it this CEO or any other CEO. Unless "these guys" are going to significantly share the wealth with those who truly make any company what it is - the employees - they hold no credibility in my eyes. $760 per hour is, simply put, absolutely ridiculous, no matter how big the picture is…

[depotoo]

this man has taken other co.'s that were in bankruptcy and brought them back thus saving thousands of jobs. are you saying he did nothing to earn his pay???

[southerngale]

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.

[JQ Public]

mmmm those donuts are so delicious mmmmmmmmmmmmmm!

[Pburgh]

David would have done it for 2 dozen chocolate covered KK a day!!!!!!!!!!!! VB you missed your chance

[Ixolib]

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!!).

[nystate]

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!!).

Do you watch proffessional sports on TV? NFL, NBA, etc...? I don't understand how anyone deserves $18 million a year for pitching a fastball....

[kevin]

Yes, being a CEO isn't a no-brainer job.