“We believe (the new structure) aligns executive officer compensation with restoring shareholder value, and motivates the management team to further enhance value to our owners,” the company's compensation committee said in a filing with federal trade regulators. In other words, the co-CEOs can expect more cuts if they don't turn things around this year.
Just last Tuesday, Chipotle was forced to close its Billerica, MA, restaurant due to a Noroviurs scare, although it appears extensive new food safety measures prevented any customers from becoming sick. Despite that fact, the incident knocked several dollars off Chipotle's stock price last week, and pushed it even further away from its all-time high of $758 a share last August, or before the widespread food-borne illness outbreaks, according to the reports. Additionally, the moves come after Chipotle reported huge declines in earnings during the last quarter of 2015.
It remains to be seen how Chipotle rebounds from the outbreaks, but it'll probably take a lot more than just free burritos.