Health
Rite Aid CEO’s $20 Million Pay Spurs Lender Backlash
- Drugstore chain filed for chapter 11 protection last year
- Creditors seek to renegotiate CEO pay before funding exit
A Rite Aid store in New York.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
Rite Aid Corp.’s main lenders are demanding a proposed $20 million payout to Chief Executive Officer Jeffrey Stein be reduced before they fund the company’s exit from bankruptcy, according to people with knowledge of the situation.
The pay package is one of the few remaining points of contention in negotiations that began last October when the company filed for Chapter 11, the people said. The pharmacy chain in April put off a key court hearing in order to complete a deal that would cut $2 billion in debt, resolve lawsuits related to opioid prescriptions and end the company’s prolonged stint in bankruptcy.