Business

Chipotle CEOs won’t get massive raise

Chipotle Mexican Grill’s two CEOs are finally starting to feel some real heat over their lavish pay packages.

A stunning 77 percent of shareholders voted against the fast-food chain’s generous compensation plan on Thursday — a plan that sank $58 million into the coffers of its co-CEOs last year alone.

The vote, while non-binding, is nonetheless the strongest shareholder pay diss of 2014.

It reflects rising shareholder indigestion over the generous salaries and stock grants to Steve Ells and Monty Moran, who have consistently cashed out Chipotle shares as soon as they get them.

“Shareowners overwhelmingly said today they are fed up with excessive executive pay at Chipotle,” said New York City Comptroller Scott Stringer, who voted against the pay plan. “The onus is now on the board to rein in the company’s egregious pay practices.”

Chipotle is taking the rebuke “very seriously,” according to spokesman Chris Arnold.

“It has always been, and continues to be, a top priority that our compensation programs are driving the creation of shareholder value,” Arnold said.

The Denver-based chain, with 1,637 stores as of March 31, will “continue to engage” with its investors about executive compensation, Arnold said.

Chipotle “admitted this is a wake-up call today,” said Michael Pryce-Jones of CtW Investment Group, which launched the proposal against the pay plan.

“But they should have seen this coming a long time ago,” Pryce-Jones added, noting that 27 percent had protested Chipotle’s pay plan a year earlier.

Shares in the $15 billion company fell 1.7 percent on Thursday to close at $495.92.