Ingles executives to receive multimillion-dollar bonuses in 2024 despite lower profits
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Ingles Markets faced challenges in 2024 due to Tropical Storm Helene, inflation, and rising labor costs, resulting in a decrease in profits. Despite this, top executives at the grocery chain received significant bonuses.
Robert P. Ingle II, the company’s board chairman, received a compensation package totaling $7.4 million in 2024, which included a $6.1 million bonus, a decrease of 7% from the previous year. Ingles’ CEO and President, James W. Lanning, received $3.1 million, with a nearly $2 million bonus for 2024, reflecting a 5% decrease from the previous year.
The impact of Tropical Storm Helene, which hit in late September, contributed to the company’s lower profits. The storm disrupted operations, causing power outages in numerous stores, store closures, and significant property damage, leading to a loss of $14 million in sales and nearly $35 million in property and inventory damage. These losses were partially offset by insurance but were expected to escalate in the following year.
The company’s net income for 2024 was down to $105.5 million compared to $210.8 million in the previous year due to increased costs of goods, rising operating expenses, and heightened labor market competition, resulting in inflation-related challenges.
Despite the financial hurdles faced by the company, Ingles managed to increase the median wages of its employees, with a median salary of $22,801 for the 24,285 employees in 2024, showing a $93 annual raise from the previous year. The company’s annual report indicated that bonuses paid out to associates and managers decreased from $34.4 million in 2023 to $29.2 million in 2024.
The gap between the CEO’s compensation and that of other employees, known as the CEO pay ratio, decreased to 137-to-1 in 2024 from 145-to-1 in 2023, reflecting a somewhat improved ratio. Ingles’ annual shareholder meeting is set for March 3, where a proposal to add two shareholder seats to the board of directors may be opposed by Robert P. Ingle, who holds a majority stake in the company.
As the company navigates these financial challenges, demonstrating the resilience of the business amidst external pressures, Ingles Markets continues to invest in its workforce, offering increased wages and bonuses despite facing setbacks in profitability.
