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Dear CII Members,
I’m reaching out to bring to your attention an important vote at Dollar General’s annual meeting on May 29th.
We urge you to vote AGAINST Proposal 2, which proposes executive compensation practices that are inimical to good governance, lack transparency, and demonstrate an insufficient alignment to the interests of both the Company’s workforce and its long-term
shareholders.
Particularly in light of the Company’s erratic financial performance, we believe voting against this proposal is necessary due to the threat it poses to long-term shareholder interests. The proposed compensation plan effectively
rewards executives for leaving the Company altogether through generous severance provisions -- all while the average employee’s median wage is $18,657, and many employees face
unsafe working
conditions. Despite CEO Todd Vasos’ accumulation of significant wealth during his prior time in the role, the Company granted him “rehire options” that are not sufficiently tied to Dollar General’s long-term performance and could award him a windfall. These
compensation practices appear to virtually guarantee personal enrichment for executives regardless of whether they facilitate the Company’s growth.
Dollar General states that its proposed compensation package aims to retain talent and align executives’ incentives to enhance shareholder value. However, in practice, this compensation package appears to be overly favorable to executives and misaligned with
the long-term interests of shareholders and employees, both of which are important Dollar General stakeholders.
A copy of our shareholder letter is available
here.
The Guardian also recently covered our concern in this article.
If you have any questions about our shareholder letter or would like a meeting, please let me know.
Best,
Kyle Schut
Shareholder Advocacy and Corporate Engagement Specialist | SOC Investment
Group
Mobile: +1 (202) 679-9688
socinvestmentgroup.com |
@socinvgrp
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