Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Senior KFC executives opt for retirement as interest rates hit pension payouts -WSJ

Published 10/15/2022, 07:56 AM
Updated 10/15/2022, 08:01 AM
© Reuters. FILE PHOTO - Vehicles line up around Kentucky Fried Chicken (KFC) after a state mandated carry-out only policy went into effect in order to slow the spread of the novel coronavirus (COVID-19) in Louisville, Ky, U.S. March 24, 2020. REUTERS/Bryan Woolston

(Reuters) - Three senior KFC executives have notified the U.S. fried chicken chain's parent company Yum Brands Inc that they will take early retirement as rising interest rates threaten to dent lump sum payouts for corporate pensions, the Wall Street Journal reported on Saturday.

KFC's U.S. Chief Operating Officer Monica Rothgery, Chief Financial Officer Trip Vornholt and Jeff Griffin, its director of national field operations will leave the company this year, the report said, citing company messages without specifying between whom.

KFC and Yum Brands did not immediately respond to Reuters' requests for comment.

"Because of these interest rates, some associates across Yum! and its brands who qualify for pensions have decided to retire in 2022," the report quoted one of the KFC messages as saying.

© Reuters. FILE PHOTO - Vehicles line up around Kentucky Fried Chicken (KFC) after a state mandated carry-out only policy went into effect in order to slow the spread of the novel coronavirus (COVID-19) in Louisville, Ky, U.S. March 24, 2020. REUTERS/Bryan Woolston

Vornholt will leave at the end of November, the report said.

The Federal Reserve has raised its policy rate from near-zero in March to the current range of 3.00% to 3.25% as it battles inflation. A fourth straight 75-basis-point interest rate hike is expected next month after data on Thursday showed inflation accelerating faster than expected in September.

Latest comments

Typical overpaid exec it's only the money! What if interest rates were normal - like 5 or,6% or 8% or 15-20% like credit card companies charge. These greedy people need to look past their pocketbooks, but then maybe they weren't doing much of a,job anyway just filling pockets like most.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.