Industry News | April 16, 2002
Krispy Kreme's CEO Livengood Got a 13% Raise Last Fiscal Year
Livengood, forty-nine years old, received a salary of $450,000 for the fiscal year ending February 3rd , according to proxy materials Krispy Kreme filed Tuesday with the Securities and Exchange Commission -- a twenty percent boost from his 2000 salary of $375,000. He also got a bonus of $714,751, up four percent from $686,045. Livengood's total annual compensation rose to $1.28 million from $1.13 million.
The compensation committee of the Winston-Salem, North Carolina, doughnut maker's board said Livengood's salary increase reflected the "significant value created by [his] leadership," as well as the company's "strong earnings growth" and balance sheet. His bonus increase was based on Krispy Kreme's performance in four categories, including per-share earnings and customer satisfaction, according to the proxy.
Livengood was awarded options to acquire a total of 582,800 shares with exercise prices ranging from $15.13 to $31.93 a share and potential realized value of $6.1 million if Krispy Kreme's stock price climbs at an annual rate of five percent. Livengood got twenty-seven percent of all options awarded to the company's employees during the fiscal year; he was awarded options on 45,400 shares in fiscal 2001.
Krispy Kreme saw its fiscal 2002 net income surge seventy-nine percent to $26.4 million, or 45 cents a share, from $14.7 million, or 27 cents a share, a year earlier, boosted by higher profit from company stores, dough-making and franchises. The company's share price more than doubled to $39.02 as of February 3rd from Jan. 28, 2001 , the end of Krispy Kreme's previous fiscal year, compared with a twelve percent decline in the New York Stock Exchange's composite index.
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