{
  "docId": "019dd923-622b-71dc-a6d9-b7733990b4fe",
  "docSlug": "9c639b8b1898",
  "documentTitle": "Darden Restaurants, Inc. (DRI)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2014-03-31 00:00:00",
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  "pageNumber": 39,
  "pageCount": 108,
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  "slideType": "expose_contradiction",
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  "density": "balanced",
  "nDataPoints": 4,
  "notes": "Uses the 'ceo-quote-contradiction' framework logic by linking executive pay structure to poor strategic outcomes.",
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  "components": [
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      "kind": "callout",
      "text": "We question whether compensation decisions are motivating management to rush the separation of Red Lobster",
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      "text": "Given Red Lobster’s challenges, we seriously question the rationale for rushing to separate the business prior to making material improvements and despite the objections from some of the Company’s largest shareholders.\nManagement has shown similar irrational behavior with regard to past decision making when those decisions were influenced by compensation.\nSince becoming CEO in 2004, Mr. Otis’ and the rest of the executive team’s annual bonus award payments were largely determined by revenue growth (30%) and EPS growth (70%).(1)\nTherefore, it was advantageous for management’s personal compensation to spend significant amounts of money opening new stores and acquiring businesses, to drive these metrics, even if it resulted in poor stock price performance or poor return on capital decisions.",
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      "text": "(1) From 2007 to 2013 Darden management's annual incentive cash payments, which is pursuant to the Management and Professional Incentive Plan (MIP), were largely determined by total Darden sales growth (30%) and total Darden EPS growth (70%). Prior to 2007, this plan was largely determined by total Darden sales growth (20%), total Darden EPS growth (60%) and return on gross investment (20%).",
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      "text": "We question whether compensation decisions are motivating management to rush the separation of Red Lobster",
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      "evidence": "Links executive compensation metrics to irrational strategic behavior.",
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      "name": "Cost Of Inaction",
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      "evidence": "The document discusses the potential consequences of not addressing the separation plan.",
      "position": 1,
      "objective": "To highlight the cost of inaction regarding the Red Lobster separation",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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