wfm #1
TRANSCRIPT
Leadership and Financial Performance Summer 2011
Prof: Amy Burnett, Ph.D.WFM: Update #1
By Marion Sanchez
Presentation Agenda Thesis Short Story Why I chose WFM P/E Ratio & Market
Cap Corporate Leadership
& Ethics
Recent Company Strategies
Latest News Reference List Questions and
answers
Thesis StatementOptions:
BuySellHold
Short Story
Short Story Founded in Austin, Texas (1980) by
John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods
Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery
Memorial Day in 1981, worst flood in 70 years destroyed all assets
With support, the store opened 28 days later In 1984, WFM began expansion out of Austinhttp://www.youtube.com/watch?v=i3bAu6GQApE&feature=BFp&list=FL9BzvZpWGB4c&index=2
Why I chose WFM?
PerseveranceCreativityPurpose
Why I chose WFM? Mission statement
Whole Foods, Whole People, Whole Planet Local Producer Loan Program Seafood Sustainability Avoiding genetically engineered foods Outlook for the future Global community
Whole Food Planet Foundation Whole Foods Kids Foundation
I am a customer!
P/E Ratio & Market Cap Sector: Services Industry: Grocery Store As of July 27, 2011
Trade: 65.43 Market Cap: 11.50B P/E: 37.67
Competitors Kroger (KR) Safeway Inc (SWY) Super Valu (SVU)
Corporate Leadership & Ethics
In 2006, John Mackey (Co-Founder) slashed his salary from $1 million to $1. Additionally, from that point on, proceeds from his stock options were donated to charity.
All WFM’s executives are expected to make similar, but smaller, sacrifices.
For nearly 20 years, WFM has capped compensation for top management. Today, it limits executive pay to 19 times the average full-time worker's salary.
"Fewer things harm an organization's morale more than
great disparities in compensation.” John Mackey."When a workplace is perceived as unfair and greedy, it
begins to destroy the social fabric of the organization.“ John Mackey.
Corporate Leadership & EthicsTop compensated officers: Mr. Walter Robb, Co-Chief Executive Officer and
Director Total annual compensation: $453.2K
Mr. John P. Mackey, Co-Founder, Co-Chief Executive Officer Total annual compensation: $1.0
Mr. A. C. Gallo, President and Chief Operating Officer Total annual compensation: $404.0K
Ms. Glenda J. Chamberlain, Chief Financial Officer Total annual compensation: $381.8K
Mr. James P. Sud, Executive Vice President of Growth Total annual compensation: $421.5K
Recent Company Strategies Co-CEO Walter Robb announced that
the company aims for 1,000 stores, including 35 in Canada.
In March 2011, WFM announced an easy to apply and low interest loan program for farmers.
Latest News Whole Foods named national retail
powerhouse (ABJ) ‘Non-GMO’ seal identifies foods mostly
biotech-free (NYT)
Reference List Hadlock, R (News Anchor). (September 14, 2010). Austin News KXAN. Austin: KXAN. Retrieved from
http://www.youtube.com/watch?v=i3bAu6GQApE&feature=BFp&list=FL9BzvZpWGB4c&index=2 (2011). Whole Food History. Retrieved from
http://www.wholefoodsmarket.com/company/history.php (July 17, 2011). YCharts. Retrieved from http://ycharts.com/companies/WFM/market_cap (July 17, 2011). Y Finance. Retrieved from http://finance.yahoo.com/q/in?s=WFM+Industry Hamner, S. "Whole Foods CEO John Mackey slimmed down the grocery chain's executive salaries,
resulting in a healthier, happier company“. CNN Money (2006). Retrieved from http://money.cnn.com/galleries/2007/biz2/0705/gallery.contrarians.biz2/3.html
Lomax, A. “Whole Foods' Cornucopia of Growth”. The Motley Fool. (July 19, 2011). Retrieved from http://www.fool.com/investing/general/2011/07/19/whole-foods-cornucopia-of-growth.aspx
Furness, A. “Whole Foods offering loans to farmers”. Austin Business Journal. (March 25, 2011). Retrieved from http://www.bizjournals.com/austin/print-edition/2011/03/25/whole-foods-offering-loans-to-farmers.html
Silva, T. “Whole Foods named national retail powerhouse”. Austin Business Journal. (July 11, 2011). Retrieved from http://www.bizjournals.com/austin/news/2011/07/11/whole-foods-named-national-retail.html
Reference List Neuman, W. “‘Non-GMO’ Seal Identifies Foods Mostly Biotech-Free”. The New York Times. (August
28, 2009). Retrieved from http://www.nytimes.com/2009/08/29/business/29gmo.html?ref=wholefoodsmarketinc
http://images.search.yahoo.com/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dwhole%2Bfoods%2Bmarket%26fr2%3Dpiv-web&w=1400&h=937&imgurl=deep.co.uk%2Fwebmedia%2Fportfolio%2Fart_direction%2Fbig%2Fwhole_foods_market%2F01_wfm.jpg&rurl=http%3A%2F%2Fdeep.co.uk%2Fportfolio%2Fart_direction%2Fgallery%2Fwhole_foods_market%2F1%2F&size=310KB&name=Whole+Foods+Mark...&p=whole+foods+market&oid=240b717b9b211bb38ddffab43c753f30&fr2=piv-web&no=2&tt=131000&sigr=127lfjtbq&sigi=12did7uiq&sigb=12d3irou7&.crumb=N8SjodviEiT
http://wholefoodsmarket.com/pressroom/files/2010/07/10thlamar1980.jpg http://wholefoodsmarket.com/pressroom/files/2010/07/1981-flood_0.jpg http://wholefoodsmarket.com/pressroom/files/2010/07/austin-lamar-landmarkstore.jpg http://wholefoodsmarket.com/pressroom/files/2010/07/whole-trade-guarantee-bananas.jpg
Any questions?
Thank you!