Market Basket CEO Criticizes Board of Directors Again
Market Basket CEO Arthur T. Demoulas has released a letter to employees, in which he was strongly critical of the company's Board of Directors and potential changes to the company's profit-sharing plan, according to the Lowell Sun.
The four-page letter was written to the Chairman of Demoulas Super Markets Inc.'s Board of Directors as well as the Chairman of the Board's investment committee. Demoulas cautioned against changes that are being considered for the profit-sharing plan. In addition, he denounced the actions of the board since a change in majority control of the company occurred last June.
Arthur T. Demoulas' letter is not the first time he has spoken out against the Board of Directors. As AndNowUKnow has previously reported, his side of the family once had majority control, but last June control shifted to the rival side of the family aligned with his cousin, Arthur S. Demoulas.
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"Given the deplorable track record of the new board since its inception in June 2013," Demoulas said, "you are naive if you think our associates and the plan participants are going to believe that this board is acting in their best invest by making the wholesale changes to their plan that you propose."
The profit-sharing plan was previously overseen by a board of trustees and is now being handled by the new investment committee. Demoulas said the changes include individualized investment options instead of a single plan for all, which is currently in place.
"You think investment choice is good," he said. "I think it is divisive and breaks down unity in this company. It will no longer be, 'how did we do this year?' but be instead, 'how did you do?'"
A spokeswoman for the Board of Directors reportedly issued only a brief statement in response to Demoulas' letter, saying, "The board will respond in due course, in the proper manner, in order to provide its stakeholders with the accurate information."
Demoulas Market Basket Supermarkets
