With big companies continually looking to increase shareholder profits, it’s becoming harder to fund annual raises for CEOs. Thus, many companies are turning to rank-and-file employees for help.
At Priticom, a Midwest formulation consortium, the company determined in January that it wouldn’t be able to give CEO Martin Groenig his anticipated increase and still provide shareholders with a 76 percent return.
So employees agreed to raise the money themselves. Thanks to their efforts, Groenig will receive a 20 percent raise – taking him from $32.4 million to $38.9.
“It gives you a warm feeling to help a person out,” says Tina Weemson, a financial alterations specialist. “It was an amazing team effort.”
Weemson organized three department bake sales that raised over $1600. Other activities included car washes, bingo nights, casual clothes days, and a karaoke night at a nearby club that featured only Groenig’s favorite songs.
Employees who were unable to take part in fundraising activities were allowed to take a pay cut of from 4 to 10 percent, or to surrender vacation days.
“Participation was completely optional,” says Priticom spokesperson Melanie Roy. “There was no coercion in any way.” She says that Groenig is receiving a list of everyone who donated so he can send them individualized thank-you notes. “He has always been a person who cares about his employees.”
“I’m proud of our accomplishment,” says employee Weemson, who concedes that the only time she’s ever seen Groenig was when his limo pulled alongside her Ford Fiesta. “He nodded to me,” she says.
“And let’s not loose sight of the fact that Mr. Groenig is making a sacrifice, too,” says Roy. “Last year he got 25 percent.”
