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Rite Aid's CEO Payout Becomes Point of Contention as the Company Seeks to Exit Bankruptcy

2024-06-06 23:53:59.990000
[num] Fortune

Rite Aid's lenders are demanding a reduction in CEO Jeffrey Stein's proposed $20 million payout before funding the company's exit from bankruptcy. The pay package is one of the remaining points of contention in negotiations that began in October 2023 when the company filed for Chapter 11. Rite Aid has faced concerns from creditors about its liquidity and has accumulated significant professional expenses during the bankruptcy process. Talks over Stein's compensation are ongoing. Rite Aid's restructuring plan involves creditors taking over the struggling chain and exiting bankruptcy protection. The company's legal team is working on a rescue deal with banks and a bondholder group. Stein is currently collecting $300,000 in monthly consulting fees. The restructuring plan also includes a $75 million injection of financing from the creditor group to support the chain's cash reserves. Stein previously received a monthly consulting fee of $100,000 and a success bonus of $1.25 million when he served as chief restructuring officer for GWG Holdings Inc. Rite Aid declined to comment on the matter. [b174498e]

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