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Whole Foods Shareholders Back CEO

Shareholders at the Whole Foods Market annual meeting here made it clear last week that they like the job John Mackey is doing as chairman and chief executive officer. As Mackey announced voting results for two management and two shareholder proposals, each was greeted with polite applause. But when he announced the defeat of a shareholder proposal that would have split the positions

AUSTIN, Texas — Shareholders at the Whole Foods Market annual meeting here made it clear last week that they like the job John Mackey is doing as chairman and chief executive officer.

As Mackey announced voting results for two management and two shareholder proposals, each was greeted with polite applause. But when he announced the defeat of a shareholder proposal that would have split the positions of chairman and CEO, the crowd erupted into sustained applause and cheering.

Mackey attracted negative publicity during 2007 because of online message-board activity in which he used a fake screen name to criticize Wild Oats Markets, which subsequently agreed to be acquired by Whole Foods.

After the ovation ended, Mackey said, “Since all I do as chairman is run the annual meeting, I will be leading the meeting next year, so thank you very much!”

The proposal to split the two positions won support from 27% of those voting, compared with 73% who favored management's position and voted against it.

Another shareholder proposal — to force directors who don't win a majority vote to resign — also failed, with only 12% voting for it.

Whole Foods operates 271 stores in 37 states and had 2007 sales of $6.6 billion. With another 88 stores in the pipeline guaranteed, the company appears on track toward its goal of $12 billion in sales by 2010, “and we will grow from there,” Mackey said. “No markets are saturated, and we see opportunities for potential growth everywhere we are.”

He said the chain's top markets, including New York, Los Angeles and Chicago, “allow denser concentrations of stores and are still under-served.”

The chain's fifth New York-area store will open later this year in the Tribeca section of Manhattan, Mackey said. A sixth Manhattan location is set for next year on the city's Upper West Side, and additional stores are planned for Brooklyn, Long Island and Yonkers.

Whole Foods also plans to relocate and expand its store in the Lincoln Park area of Chicago, moving from a 36,000-square-foot store to an 80,000-square-foot space across the street.

The company also sees expansion opportunities in smaller cities, Mackey said.