"I am concerned about the levels of compensation afforded our top management at times when these people were possibly only in the 'right place' at the 'right time,' rather than building a greater base for profitable operations," Armstrong wrote in his proposal.
Noddle's salary for fiscal 2009 came to $1.16 million, and total compensation was $1.247 million. That's a sharp drop from his total compensation of $11.489 million in 2008 and $8.417 million in 2007, according to the Star Tribune's total compensation formula. Total pay includes bonuses, the value realized from restricted stock and stock options exercised as well as perks such as 401(k) contributions. Noddle's total pay dropped sharply in 2009 because he didn't exercise any options or realize any gains on restricted stock, as he did in the prior years.
Supervalu shares fell from a high of $49.67 on July, 18, 2007, to a low of $9.02 on Nov. 20. It closed at $13.29 Thursday.
Supervalu operates 2,500 supermarkets across the country. The business has lost market share to both smaller and larger retailers who offer lower prices, with limited assortment stores like Aldi on one side and warehouse centers like Wal-Mart and SuperTarget on the other, according to research analyst Willard Bishop.
Traditional supermarkets saw sales increase 3.6 percent to $403.7 billion last year, according to the firm, but market share slipped to 42.1 percent. Limited assortment stores like Aldi and Trader Joe's, meanwhile, saw sales grow 14.3 percent to $22.3 billion.
Shareholder adds to victories
Armstrong, who holds 350 shares of Supervalu, according to the company's proxy statement, said he's held the stock for about a dozen years. He did not attend Supervalu's annual meeting Thursday held at the Minneapolis Convention Center, hiring someone to represent him and ask questions of the board in his place.
It's Armstrong's second Supervalu victory; in 2008 he got shareholders to shorten the term of board members from three years to one.
Elsewhere this month, he chalked up a win against Chesapeake Energy Corp., where he successfully proposed shortening board terms to one year. Two years ago, he said, he withdrew a shareholder proposal to shorten board terms at Nash Finch after the Edina-based food company agreed to make the change.
Star Tribune researcher Patrick Kennedy contributed to this story.
Matt McKinney --612-673-7329
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