The process to select a long-term CEO for the company will be started right away by the Board. In addition, the Board’s Nominating and Corporate Governance Committee will start looking for a substitute director to take Mr. Krishnamurthy’s place.
Mr. Hoffmaster has over 30 years of executive expertise in finance and operations for both public and private enterprises. He joined the company in January 2023. Before joining the company, Mr. Hoffmaster was the CEO of specialty gourmet food retailer New Seasons Market, where he led the business through one of the most tumultuous times in the grocery retail sector. The company increased its EBITDA by more than 30% in just two years thanks to a targeted growth and cost optimization program that Mr. Hoffmaster oversaw and implemented. Mr. Hoffmaster was a leader at Whole Foods Market and H-E-B, two other top supermarkets, before joining New Seasons Market.
Mr. Hoffmaster and the Company signed an Amended and Restated Employment Agreement, dated as of the Appointment Date, in conjunction with his appointment as interim Chief Executive Officer. In accordance with the terms of the Hoffmaster Employment Agreement, the Board has decided to: (a) raise Mr. Hoffmaster’s base pay from $360,000 to $400,000; (b) give him a $240,000 bonus six months after the Appointment Date if he meets the Board’s requirements; and (c) if Mr. Hoffmaster’s total equity holdings as of February 21, 2024 do not exceed $750,000 (pretax), then the Company will pay Mr. Hoffmaster the difference if the Appointment Date and $750,000 are reached at the time of a change of control of the Company.
