Top executives and board members at Camp Hill, Pa.-based Rite Aid face an uncertain vote from shareholders during their annual meeting Oct. 30 amid the company's plummeting stock value and failed mergers, according to Forbes.
The company's CEO John Standley, six board members and three recently appointed independent directors are up for election Oct. 30 during Rite Aid's annual stockholders meeting in New York.
Several shareholders have expressed concern over Mr. Standley and the company's executive leadership after the company's failed merger with grocery store chain Albertsons in August and its declining stock value, which is barely above $1, according to the report. In September, shareholders stripped Mr. Standley of his role as chairman of the board and nominated three new board members.
Proxy advisers Institutional Shareholder Services and Glass, Lewis & Co. have recommended shareholders support the board and recent nominees, but have voiced concerns about Rite Aid's executive pay practices.
"Annual incentive awards were earned after the compensation committee lowered threshold performance goals mid-year," ISS said in a report last week obtained by Forbes. "As a result, CEO pay increased despite the company's significant share price underperformance. The CEO's long-term incentives also remained sizable and the board awarded him a much larger number of shares in [fiscal year] 2018, effectively insulating the grant value from the impact of negative stock movement."
The company has also faced mounting pressure to develop a partnership strategy as its rivals gain leverage in the market through their own mergers and acquisitions activity to compete with industry disruptors like Amazon. Earlier this month, the U.S. Department of Justice approved CVS Health's $69 billion acquisition of Aetna.
To access the full report, click here.