It seems like there is no end in sight to the troubles that Menu Food is going through after their massive pet food recalls that began in March.
Today the company announced that the costs from the pet food recalls have increased to $56 million instead of the initial $46 million they estimated. Due to these rising costs, they are cutting its work force by another 10-15 percent to reduce the company’s operating costs.
Menu Foods raised its estimate of recall expenses “because the volume of customer returns and associated costs are now estimated to be greater than originally anticipated.”
Menu Foods’ President and CEO Paul Henderson (pictured here on right with Executive Vice-President Dr. Richard Shields) and other top executives are “sharing the pain” of the pet food recall aftermath.
Henderson will reduce his salary by 22 percent. In 2006, Henderson made $873,721 in salary, bonuses, and incentives. (Oh sorry Paul, perhaps you may need to cancel your membership to the country club.) Other senior executives will have a 17 percent pay cut, and board of directors will also see a decrease of 20 percent.
The company also announced the completion of the sale of their production facility in North Sioux City, South Dakota to Mars, Incorporated. The South Dakota plant accounted for about 16 percent of production and 14 percent of the company’s work force.
(Thanks Bill, 5CatMom, menusux)