Rite Aid CEO’s $20M salary causes ire among lenders

Despite Rite Aid Corp. declaring bankruptcy in October, CEO Jeffrey Stein is set to receive a $20 million payout. And the retailer’s main lenders aren’t happy about it, according to reporting from Bloomberg. 

Stein’s pay package is one of the few remaining points of contention in negotiations that began when the company first filed for Chapter 11.

The pay dispute also comes amid broader concerns among creditors as to whether Rite Aid will have enough liquidity once it emerges from bankruptcy, Bloomberg previously reported.

A representative for Rite Aid declined to comment.

Stein, who was appointed CEO the day Rite Aid filed for bankruptcy, is also collecting $300,000 in monthly consulting fees, Bloomberg reported. Stein is also a founder and managing partner of Stein Advisors LLC, a financial advisory firm that provides consulting services to companies dealing with financial and operational restructuring.

Rite Aid’s restructuring plan calls for creditors to take over the struggling chain and exit bankruptcy protection as a going concern, according to Bloomberg.