News

Pizza Inn says CEO Parker is overpaid

November 3, 2004

THE COLONY, Texas -- The board at 410-unit Pizza Inn believes CEO Ronald Parker's pay package far exceeds his performance.

According to a filing with the Securities and Exchange Commission, the company said it has evaluated Parker's compensation by comparing it to other restaurant CEOs, as well as other companies' market performance.

"As a result of this review, the Compensation Committee believes the total amount of Mr. Parker's compensation to be well in excess of the compensation of chief executive officers at comparable companies and based upon the Company's performance for the last completed fiscal year. The Compensation Committee also believes that the compensation of the Chief Executive Officer, as well as other officers and employees of the Company, should be more directly tied to individual performance and the performance of the Company."

Parker earned more than $1 million in fiscal 2004 at Pizza Inn, roughly half the company's profit for the year. His compensation includes a minimum annual salary of $550,000, a mandatory minimum annual bonus equal to $275,000 and "certain defined benefits, which, in fiscal 2004, totaled approximately $176,084."

Revenue for the period rose to $60.2 million, up from $58.8 million in 2003. However, comparable-store sales slid 1.3 percent, and profits dropped nearly $1 million.

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