Delhaize CEO takes home €6.5 million paycheck

Delhaize CEO takes home €6.5 million paycheck
Ahold Delhaize group CEO Frans Muller pictured during a shareholders meeting in 2016. Credit: BELGA PHOTO/ DIRK WAEM

Frans Muller, CEO of multinational retail and wholesaling company Ahold Delhaize, which runs Delhaize, Albert Heijn, and in Belgium, earned €6.519 million in the 2022 financial year, according to an annual report published by the company.

The year prior, the Dutch national earned €5.7 million and around 6 million in 2020. Muller’s compensation was reportedly increased thanks to “robust” financial results achieved by Delhaizee over the past year.

Turnover and underlying profit margins also increased, while other targets, such as cash flow, share of healthy foods, and waste management, were also taken into account. Since last year, the group’s remuneration policy has placed greater emphasis on long-term value creation. Maximum annual bonuses have been reduced, while long-term incentives have been increased.

Supermarkets have posted record profits on the back of rising food inflation. The “Les Mousquetaires'' group, which owns Intermarché and controversially 86 Mestdagh locations, also recorded record profits of €825 million last year.

Ahold Delhaize turned over nearly €87 billion in revenue last year from all its businesses across Europe, many of which supermarkets. This is up 6.9% from 2021, at constant exchange rates. The company’s underlying operating profit also rose by 3.5% to €3.73 billion.

Delhaize’s record profits have led to tensions with labour groups in Belgium, especially within the context of the company’s rejection of a collective agreement on shop organisation put forward by workers. The supermarket chain has called for “a more efficient organisation within shops”, which unions fear may mean redundancies or closures.

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Record turnover and bumper profits translate into ample salary for the Ahold Delhaize boss. The CEO’s remuneration consists of a base salary of €1.151 million (up 1.9% from 2021), an annual cash bonus of €1.437 million (up 1.8%), and a share package of 3.49 million (+22.9%).

Similarly, Kevin Holt, boss of Ahold Delhaize USA, earned more than the group’s CEO in Europe last year, netting €6.6 million.

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