Kroger Shareholders Reject Proposals

Kroger shareholders rejected five shareholder-sponsored proposals--including one calling for a pay-for-performance executive compensation plan--all opposed by the board of directors, at the company's annual meeting yesterday in Cincinnati. Three of the proposals received support of between 38 and 40 percent of the votes cast, but none got the necessary majority for adoption. Respectively, they called for the company to develop a comprehensive policy addressing climate change, to report on its policies on toxic chemicals and other product safety issues, and to establish a specific pay-for-performance executive compensation plan. The other two defeated proposals would have given purchasing preference to poultry suppliers who use "controlled atmospheric killing" and phased out the sale of eggs from hens confined to small cages. Kroger Chairman and CEO David Dillon that the company was already following or moving toward many of the policies promoted by the proposals but that the company disagreed with the methods proposed. Shareholders overwhelmingly approved a long-term incentive and bonus plan that was proposed by the board. They also re-elected all of the board members who stood for re-election at the meeting.