Bonus Assignment#1 – Case Study Example
BONUS ASSIGNMENT Table of Contents Governance Structure of Smithfield 3 References 4 Governance Structure of Smithfield Smithfield Foods, Inc. is an US based multinational company which is engaged in the business of production and marketing of different types of food products related meats of various animals. It has it’s headquarter at Smithfield, Virginia and operates its business since 1961 (Smithfield, 2012). The company has eleven number of Board of Directors in total. Out of these six are full time employees of the company. They are as follows:
1. Joseph W. Luter, III
2. George E. Hamilton
3. Roger R. Kapella
4. Robert W. Manly
5. P. Edward Schenk, Jr.
6. Aaron D. Trub
The other five directors of the company who are not full time employees are:
1. F. J. Faison, Jr.
2. Joel W. Greenberg
3. Cecil W. Gwaltney
4. Richard J. Holland
5. Wendell H. Murphy
Out of these five directors F. J. Faison, Jr., Cecil W. Gwaltney and Wendell H. Murphy have substantial interest in Smithfield and are business partners, major consumers or suppliers of the company.
Joseph W. Luter, III is the CEO as well as the chairman of the Board of Smithfield. In most of the organizations the CEO of the companies is the chairman of the Board of the companies; however it is not a strict norm to be followed by any company.
The compensation structure of the Board members of the company is such that being a member of the board each one of the non-employee directors received $3000 as annual retainer. In addition to this each one of them received $500 for presence in every board meeting and $500 for attending all committee meeting of the company.
Smithfield Food, Inc. (1992). Proxy Statement. Retrieved from http://www.udel.edu/Finance/varma/smithfieldfoods.pdf.
Smithfield Food, Inc. (2011). Proxy Statement (Definitive). Retrieved from http://files.shareholder.com/downloads/SFD/1911016049x0xS1193125-11-221510/91388/filing.pdf.
Smithfield. (2012). Our Company. Retrieved from http://www.smithfieldfoods.com/our_company/about_us.aspx.