WINSTON-SALEM, N.C. — The top executives of Krispy Kreme Doughnuts Inc. received small increases in salary for the fifth consecutive year, according to a regulatory filing today.
The executives did not get a bonus for a sixth consecutive year, but again received significant compensation from the company’s nonequity incentive plan.
James Morgan, chairman, president and chief executive, received a 3 percent increase in salary to $737,222. His nonequity incentive-plan compensation rose 30.7 percent to $1.12 million. Morgan received restricted stock and option awards valued at just under $1.2 million on the date that the award was granted.
Morgan received $27,500 in all other compensation, listed as a monthly cash “executive allowance.” His total compensation increased 34.4 percent to $3.09 million.
The company has made significant financial progress since Morgan became the top executive in January 2008.
Krispy Kreme had adjusted net income of $43.2 million for fiscal 2014, which ended Feb. 2. That compared with $32.9 million in fiscal 2013.
It was the fourth consecutive profitable year for a company that struggled mightily from 2004 to 2010.
Fiscal 2014 revenue climbed to $460.3 million compared with $426.8 million a year ago.
However, analysts say increased profitability in fiscal 2015 may come down to whether consumers are willing to pay more for a doughnut – either in a Krispy Kreme shop or in a grocery or convenience store – or become more attracted to Krispy’s signature coffee blends that also are being sold in packages at retail.
Douglas Muir, chief financial officer, received a 3.1 percent raise in salary to $376,175. His nonequity incentive-plan compensation was $343,374. His total compensation was $1.15 million, down 11.9 percent.
Dwayne Chambers, chief marketing officer, received 5.4 percent raise in salary to $297,750. His nonequity incentive-plan compensation was $228,010. Chambers’ total compensation was just under $2 million, up 101.5 percent, primarily because he received restricted stock and option awards valued at $1.47 million on the date that the award was granted.
Bradley Wall, senior vice president for supply chain and off-premises operations, and Cynthia Bay, senior vice president for U.S. franchises and company stores, both received a 2.9 percent raise to $315,750 and nonequity incentive-plan compensation of $240,000. Wall’s total compensation was $913,507, while Bay’s total compensation was $913,504 – both down 10.7 percent.
The company will hold its annual shareholder meeting at 9 a.m. June 17 in the Hearn Grand Ballroom of the Marriott Hotel in downtown Winston-Salem.