Sam Duncan was named CEO and president of Supervalu Inc. on Monday, replacing Wayne Sales and confirming a leadership turnover that was set in place when the company inked a deal to sell an equity stake, and several of its grocery chains, to a private equity group.
Eden Prairie-based Supervalu (NYSE: SVU) announced that Duncan would begin his new role immediately. Wayne Sales will remain as executive chairman until the deal between Supervalu and the investment group, led by Cerberus Capital Management, closes.
>You can read Supervalu’s media announcement of Duncan’s appointment here.
The announcement wasn’t a surprise; Supervalu said a month ago that Duncan, a former CEO of OfficeMax (NYSE: OMX) would take over as CEO as part of the deal that turned over ownership of Albertsons, Acme, Jewel-Osco and Shaw’s and Star Market stores to the Cerberus group. Cerberus will also get a stake in Supervalu and several board seats.
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Duncan has a reputation as a turnaround guru. He helped right the fortunes of OfficeMax and, at ShopKo, paid down debt and prepped the business to be sold.
Sales, meanwhile, will exit with a lucrative severance package. Supervalu said that he would receive $12.8 million in “golden parachute” compensation.
Duncan will receive a base salary of $1.5 million, making him the latest in a series of richly rewarded Supervalu CEOs — whose compensation has remained high over a decade even as the company has stumbled.