Chipotle co-CEOs suffer pay cuts
Chipotle’s top two executives suffered big pay cuts after a series of food scares sent sales plunging toward the end of 2015. But they each still took home more than $13 million.
Steve Ells, 50, was given a pay package worth $13.8 million for last year, down from $28.9 million the previous year. Monty Moran, 49, was given compensation worth $13.6 million, down from $28.2 million. The packages include a salary, stock awards and other perks.
Since late October, Chipotle Mexican Grill has been battered by foodborne illnesses that sickened people around the country. For the fourth quarter, it reported a 14.6 percent drop in sales. That was the first decline since the Denver company went public.
Still, both men got raises in their base salaries, which the company says was because they had not increased since 2012.
Ells, who serves both as company chairman and co-CEO, was paid a base salary of $1.53 million, up from $1.4 million. Moran received a base salary of $1.31 million, up from $1.2 million. Both received stock awards valued at $12 million, but neither received stock options or a performance-based cash payment.
However, they also received other financial perks, such as contributions to retirement plans and car costs. That was pay was valued at $281,858 for Ellis and $223,041 for Moran.
Chipotle was clear in its filing that its recent stumbles are not acceptable.
The company said that because of the food-borne illness incidents that negatively impacted the company’s financial results, its performance fell short of its goals. In turn, no bonuses were paid to executive officers.
