Ahold boss earns cool EUR 3.49m

14th April 2005, Comments 0 comments

14 April 2005, AMSTERDAM — Swede Anders Moberg earned EUR 3.49 million last year as boss of Dutch retail giant Ahold.

14 April 2005

AMSTERDAM — Swede Anders Moberg earned EUR 3.49 million last year as boss of Dutch retail giant Ahold.

He was recruited in 2003 after Ahold's unit US Foodservice was found to have overstated earnings by USD 800 million (EUR 664 million). The scandal brought Ahold to the brink of bankruptcy. It cost Ahold CEO Cees van der Hoeven his job.
 
Moberg took over in May 2003 and shortly afterwards was at the receiving end of flak over the size of his remuneration package.

The publication of the company's 2004 annual report shows that Moberg was paid EUR 3.49 million last year, about half a million more than for his first year when he worked for just under eight months for Ahold. His 2004 earnings included a bonus of 117 percent of his salary last year.

According to his contract of employment, he can earn a bonus of up to 250 percent of his salary, depending on the company's performance.

Ahold slightly disappointed analysts by announcing on Thursday that its 2004 loss was EUR 7 million less than it had reported earlier. Market watchers felt it was a small, but noteworthy mistake, forbes.com said.

"Although [Thursday's] change is minor, it sends the wrong message," analyst Jan Wirken of investment bank Van Lanschot told Forbes. It "shows the company still doesn't have matters under control".

Ahold said the full-year loss it reported in March should now be EUR 438 million due to "a change" in the sale last year of its BI-LO/Bruno's stores in the US. It did not elaborate further on the change. The retailer recorded a loss of EUR 1 million for 2003.

The company also revealed on Thursday that it had found "two material weaknesses" with respect to its internal controls and was taking steps to address the problems, which it said, did not impact on the results.

[Copyright Expatica News 2005]

Subject: Dutch news

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