According to the recent news report, Kroger one of the finest and largest grocery stores have been darned as they have ended the “hero pay”. While, the CEO Rodney McMullen found himself in a storm of criticism last spring over the payment of risk allowance to frontline workers.
Now, back in the 2020, as the coronavirus spreads across the United States, McMullen announced an increase of $ 2 an hour. Or the “Hero Bonus,” for store and warehouse workers. Two months later, the company ended the increase – even as critics indicated the risk remained.
Due to this, Kroger have faced a lot of criticism. Meanwhile, McMullen amassed a $ 22.4 million salary package for 2020 – his biggest payout since he became president of Kroger in 2014. The package, revealed on Thursday in a regulatory dossier, is up nearly 6% from the previous year thanks to a bigger bonus, a larger pool of stock prizes and a salary increase. Kroger’s average employee salary decreased 8% to $ 24,617. Kroger’s top boss had a 5.9% increase to $ 22.4 million last year
According to the statement reported, which showed that McMullen, one of many CEOs who saw their pay jump. Last year even as the pandemic disrupted the US economy and pushed millions into unemployment. The model company in the Russell 1000, a benchmark for major corporations, reported a 3% increase in CEO compensation last year, according to data compiled by Bloomberg and derived from available filings as of April 30. Kroger recorded record revenues last year as dozens of Americans stocked their groceries and ate most of their meals at home. Its shares returned 12% including reinvested dividends, after an 18% rise in the S&P 500.
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While, the precarious conditions of frontline workers led to calls for wage increases from unions, lawmakers and even President Joe Biden. Who has campaigned to raise the federal minimum hourly wage to $ 15. Several of the largest employers in the United States have moved to increase wages, including Amazon.com Inc. And McDonald’s Corp. Cincinnati-based Kroger, which operates about 2,740 stores and employs 465,000 workers. Stated in March that it plans to raise the average hourly wage to $ 16 an hour, from $ 15.50 – a 3% increase. Last April, it also awarded full-time workers a bonus of $ 300 and part-time workers half of it. The company says its average hourly wage rises to more than $ 20 when benefits like healthcare are included.
“Kroger continues to reward and acknowledge our partners for their outstanding work during this historic time,” a company spokesperson said in an emailed statement. She also said the company is offering $ 100 to every partner who receives the Covid-19 vaccine. Now, what are your thoughts on this? Is this fair to all workers working hard in pandemic? Let us know your thoughts in the comment section below!