This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Chipotle Gets 'Wake Up Call' on Executive Compensation

Stocks in this article: CMG

NEW YORK (TheStreet) -- Chipotle (CMG - Get Report) may be raising menu prices and forcing consumers to shell out more for their burrito bowls and guacamole-dolloped burritos, but the Denver-based chain's executive pay practices are getting scrutinized by investors.

At Chipotle's annual shareholder meeting on Thursday, investors gave the company what was referred to as a "wake up call" with regards to its executive compensation practices.

According to Michael Pryce-Jones, the senior policy analyst at CtW Investment Group, Chipotle's executive pay plan, a so-called say-on-pay proposal, received support from just 23% of shareholders, meaning that 77% of shareholders voted against the proposal -- the largest vote against CEO pay so far this year, the organization said.

"We were taken aback by the level of defeat," Pryce-Jones told TheStreet in an interview. "The board said this is a wake-up call for them." CtW Investment works with pension funds associated with Change to Win, a federation of unions representing more than 6 million workers in the U.S. The pension funds have more than $250 billion in assets under management and are "substantial" Chipotle shareholders.

Leading up to the vote, investors and corporate governance firms Institutional Shareholder Services (ISS) and Glass Lewis were urging shareholders to oppose the compensation for Chipotle's unusual co-chief executive structure in which co-founder, chairman and co-CEO, Steve Ells, received a package worth $25.1 million for 2013. Monty Moran, the successful burrito chain's other co-CEO, received a package worth $24.4 million for 2013. The proposal was Proposal B on the meeting's docket -- "An advisory vote to approve the compensation of our executive officers as disclosed in this proxy statement."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,240.56 +49.19 0.29%
S&P 500 1,994.81 -7.35 -0.37%
NASDAQ 4,617.8580 -20.1360 -0.43%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs