Krispy Kreme management team has fourth major change in 6 months
WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts Inc. has experienced a fourth major change within its executive management team since February with today’s news that Bradley Wall left the company on July 28, according to the Winston-Salem Journal.
The company announced in a one-sentence regulatory filing Wall’s departure as senior vice president of supply chain and off-premises operations. The company did not give a reason for Wall’s departure.
Lafeea Watson, the company’s public relations director, said the job title has been eliminated and that Wall’s responsibilities “have been reassigned.” She did not say whether the decision to eliminate the position came before or after Wall resigned.
Sales in the supply chain categories have become a key piece of Krispy Kreme’s growth strategy, representing the second-largest revenue source — $31 million — and largest operating income source — $12.7 million — during the first quarter of its fiscal year 2015.
Wall had been with Krispy Kreme since 1995 and had been promoted to the top-five management position in February 2007.
In 2013, Wall received a 2.9 percent raise to $315,750 and nonequity incentive-plan compensation of $240,000. His total compensation was $913,507.
The first change to the executive management team came in February when Jeff Welch left the company after serving as president of its international division since August 2008. Welch had been with the company almost 10 years.
Daniel Beem was hired to replace Welch in February. “Krispy Kreme believed that there was a need for a change in leadership in the international business,” Watson said in February.
Welch made $359,875 in salary in fiscal 2013, as well as $308,125 in nonequity incentive-plan compensation and $1.13 million in total compensation — the third-highest compensation amount among Krispy Kreme executives.
Nick Setyan, an analyst with Wedbush Securities, said today he does not consider the departures of Wall and Welch as reasons for concern about Krispy Kreme’s management team or its business strategies.
Tony Thompson took over June 1 as Krispy Kreme’s chief executive and president.
Thompson replaced James Morgan, the architect of Krispy Kreme’s remarkable corporate and financial turnaround of the past five years. Morgan remains executive chairman.
According to a regulatory filing, Thompson started his job with a three-year contract and a $725,000 base salary — just $12,222 below what Morgan made in those positions in fiscal 2014. Morgan is scheduled to make $765,000 in salary for fiscal 2015.
Morgan made $3.09 million in total compensation in fiscal 2014, including $1.12 million in nonequity incentive-plan compensation and stock and option awards valued at just under $1.2 million on the date they were granted.
Krispy Kreme said Thompson will be paid a cash signing bonus of $160,000 on Feb. 15, as well as certain initial equity awards “to compensate him for the value of an annual bonus and outstanding equity awards” he forfeited by leaving Papa John’s. The option and restricted stock awards would be worth $2.85 million.
Thompson would become eligible for an annual bonus — worth up to 100 percent of his salary — on Feb. 1.