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Rite Aid shareholders pull back CEO parachute


Camp Hill, Pa. – Shareholders of Rite Aid Corp. have voted to tighten the reins of the “golden parachute” payment CEO John Standley will receive if the company is acquired and he loses his job as a result. Standley had previously been slated to receive $42 million in such an event, including $31.6 million in vested equity.

However, on June 25, majority of shareholders voted against board recommendations and in favor of a proposal from CtW Investment Group, which holds 865 Rite Aid shares and advises stakeholders holding 0.18% of the company’s stock, to tie the vesting to a pro-rata amount based on CEO performance until an acquisition occurs. CtW Investment is tied to the pro-union organization Change to Win.

Walgreens has previously said it may consider a Rite Aid purchase, and there has been general speculation that the chain may be a takeover target.

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