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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "presentationDate": "2014-09-11 00:00:00",
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      "text": "Darden’s comp practices raise serious concerns about the oversight of the current Board and Darden’s proposed slate of nominees",
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      "text": "Darden has not followed best practices in numerous areas of compensation, including setting targets based on a peer group cherry-picked to include primarily companies that are an order of magnitude larger and more successful than Darden, many of whom are not even in Darden’s industry.",
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      "text": "Despite the obvious and substantial failures of Darden’s compensation practices, Darden chose to include 3 members of the Comp Committee out of its 4 incumbent nominees.",
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      "text": "As a final insult to shareholders, the Board paid outgoing CEO Clarence Otis even more in FY 2014, arguably the worst year in the Company’s history, than it did the prior year. Based on the limited information disclosed in Darden’s proxy statement, it does not appear that this bonus was even earned, implying the Board gave Mr. Otis an extra discretionary bonus.",
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      "text": "Along with a leading compensation consultant, Starboard analyzed Darden’s executive compensation practices. Despite underperforming peers substantially, members of Darden’s management have been paid at or near the top of their bonus targets.",
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      "text": "More troubling, we believe recent changes in Darden’s compensation structure may have been a factor in management’s urgency to jettison Red Lobster.",
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      "text": "By utilizing bonus targets based on total revenue growth and total EPS growth, with no capital charge or shareholder-return metric, the Board effectively incentivized management to spend as much of shareholders’ capital as possible on growth without regard to whether that spending would create or destroy value. Predictably, management spent nearly $7 billion – more than the entire current market cap of Darden – on acquisitions and capex that we believe helped management realize outsized bonuses but destroyed value.",
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      "text": "We believe that the Board has not properly linked pay with performance and has structured management compensation plans that encouraged potentially value destructive behavior.",
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      "text": "On top of poor governance practices, the Board’s compensation practices have also been terrible",
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