Papa John's CEO gets pay cut, no bonus

The State.com ^

[Dbdaily]

DES MOINES, Iowa - The top executive at Papa John's International Inc. received no bonus and no stock options in 2003, as the pizza company's earnings plunged, according to a regulatory filing. His base pay also shrank.

According to the proxy statement, founder, chairman and chief executive John H. Schnatter's total compensation package was $649,785.

The Louisville, Ky. company's executive compensation committee had approved a 2 percent raise for most officers, Schnatter included. But last May he asked that his base salary be reduced by $200,000 "in order to provide funds to increase the compensation of certain restaurant-level managers and corporate management," the Securities and Exchange Commission filing said. Accordingly, his base pay was cut to $575,200.

Also, at his request, Schnatter received no stock options or other equity-based compensation from the company. Several other senior executives, including his brother Charles Schnatter, did receive a 25,000-share option award.

Because the company didn't meet established quarterly or annual earnings thresholds during 2003, no bonus payments for performance were made under the incentive plan, the proxy said.

In 2002, CEO Schnatter was paid $750,923 and received a $293,649 bonus, but no options.

Papa John's earnings fell 28 percent to $33.6 million, or $1.86 a share, last year. Sales dropped 3 percent due to intense competition in the pizza-delivery industry.

[Dbdaily]

CEO cut his own pay for the Company. How often do you see that going on?

[FourtySeven]

CEO cut his own pay for the Company. How often do you see that going on?

Not often!

[theDentist]

I think I'm gonna go to Papa Johns more often.

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[Fast Ed97]

Unfortunately their product is not that good- it is a small step above Little Caesars.

[Dead Dog]

Great Cheap Pizza also. Goes well with Pabst.

[trad_anglican]

Sales dropped 3 percent due to intense competition in the pizza-delivery industry

Or due to the lousy taste of their pizza. Take your pick.

[martin_fierro]

Now, this is good (take & bake) pizza.

[xrp]

What's the best, in your opinion?

[johnfrink]

I like small pizza places best, but for a national chain I'd go with Round Table.

[Seruzawa]

The best? You're about to start a real flamewar here. I'd say the best pizza is made at Palermo's on Hillhurst in Hollywood.

The worst I've ever had was in Australia.

[Pikamax]

yep, a year ago I loved papa johns, but over time, they started to make the pizza thinner, more cheaper looker, Pizza Hut OTOH has stepped up its pizza.

[tutstar]

Great news that the man is looking for others first!

I love Papa Johns pizza!

[Future Snake Eater]

Maybe where you are--over here it is by far the best pizza around. I don't know anyone who doesn't love PJ's!

[Future Snake Eater]

You gotta love a company that does this.

[expatguy]

I bet he still gets FREE PIZZA!!!

[TheBigB]

In descending order...

Pizza Hut
Mellow Mushroom
Papa John's
Domino's

[Spandau]

I agree. Papa John's is like all the other chains these days. Their pizza is tasteless and soggy, like Domino's, etc. The last good pizza I can remember from a chain was Godfather's in the early 80s. Shakey's was good in the 70s.

[TankerKC]

I disagree...I love their pizza.

[Phantom Lord]

CEO cut his own pay for the Company. How often do you see that going on?

More often than you know. Especially when the CEO is also the company founder. Charles Schwab and the entire BOD did this a couple years ago to avoid lay offs.

It is far more common than people think. It rarely makes the news and is rarely remembered when it does. People remember headlines like "CEO boosts pay 500% while laying off thousands"