2015 was a hectic year for Chipotle. With E. Coli outbreaks, salmonella and norovirus causing store shut downs and public apologies, corporate honchos at the burrito chain must have been clamoring for a new year, and presumably, a new start. But as we dip deeper into 2016, things are still looking shaky for Chipotle, who had another norovirus outbreak this past week. Amidst all this trouble, the company has decided to at least put their money where their mouth is, and has decided that executives will not be receiving bonuses for 2015.
According to the Chicago Tribune, the move comes because of Chipotle’s tanking stock price and the continued health scares. Chipotle described the move in its annual proxy, filed to the Securities and Exchange Commission on Friday.
This will come as a big blow to the executives in charge at Chipotle, as last year, Chairman and co-CEO Steve Ells made $3.6 million in bonuses, while his co-CEO Monty Moran made just over $3 million. Hopefully they both saved some of that cash, because it won’t be coming back around this year.
Additionally mentioned in the proxy that outlined this years lack of bonuses, the company has said that for next year, the largest parts of executive bonuses will be determined by how well the company’s stock does.
“We believe (the new structure) aligns executive officer compensation with restoring shareholder value, and motivates the management team to further enhance value to our owners,” the company’s compensation committee said in the proxy.
As Chipotle continues to pick itself back up after falling so hard, putting more free burritos on plates and less money in executive pockets is probably a pretty good move, there’s not much the American public likes more than watching CEO’s and executives actually feel some repercussions for a company’s issues.
[via Chicago Tribune]