Hey, J. Patrick Doyle, save some dough for the pizzas.
The Domino’s Pizza CEO’s lavish pay package — $43 million over the past three years — earned a sharp rebuke from the company’s shareholders on Tuesday.
Nearly a third of Domino’s investors voted against the re-election of director Andrew Balson, who chairs the board’s compensation committee, and nearly a quarter voted against the company’s executive pay plan.
Balson, a Bain Capital exec who also sits on the board of Outback Steakhouse owner Bloomin’ Brands, is “a serial overpayer,” according to Michael Pryce-Jones of Change to Win Investment Group, which advises trade-union pension funds.
“Unfortunately, he’s also got thick skin,” Pryce-Jones added, noting that Balson has riled shareholders at Bloomin’ as well as FleetCor Technologies, on whose board he also sits.
In a statement, Domino’s said it was “pleased” that a “substantial majority” of shareholders approved its pay policies and Balson’s reelection.
“We appreciate this vote of confidence in our board, our CEO, [and] our senior leadership team,” the company said.
Domino’s noted that its stock price has been on a tear in recent years under Doyle’s leadership. In 2013, Domino’s shares surged 63 percent — after growing 113, 28 and 90 percent in 2010, 2011 and 2012, respectively.
As such, Domino’s has become “unique” in that the company performance hasn’t entirely shielded top brass from scrutiny over compensation, Pryce-Jones notes.
Disgruntled investors included the California Public Employees Retirement System, which called the plan “egregious.”
New York City Pension Funds, the Florida State Board of Administration and the Illinois State Board of Investment likewise voted against it.