Ellen Gordon, president and COO of Tootsie Roll, in 1996. (AP Photo/Beth A. Keiser)
By Julie Wernau | The husband and wife team behind the Chicago-based Tootsie Roll brand received cash bonuses this year that more than doubled their base salaries. Melvin J. Gordon, chairman and CEO of Tootsie Roll Industries, received $4.15 million in total compensation in 2009, an increase over last year’s compensation of $3.3 million, according to a proxy statement filed Friday with the Securities and Exchange Commission and his wife, Ellen R. Gordon, president and chief operating officer, received $4 million, an increase over last year’s compensation of $3.19 million.
Tootsie roll does not give its employees stock options, restricted stock
or other forms of equity compensation or grant equity compensation to
the Gordons because they own a significant portion of the company. But
the board of directors is able to exercise discretion based on the
performance of its named executive officers when deciding on total
compensation. The Gordons’ base salaries are both capped at $999,999,
the maximum that is tax-deductible. The rest of their compensation comes
in the form of a cash bonus.
Tootsie roll said it considers the compensation levels of peers at
Campbell Soup Company, Dean Foods Company, Hershey Company and Kellogg
when determining the compensation levels of its executives.
It is great that Tootsie Roll Industries are prospering in these hard economic times however how is the profitability being passed down to their employees?? Hopefully, the success is being felt throughout the company not just at the executive level. I would be interested to hear how the employees of Tootsie Roll Industries feel about the company’s success and how it has affected their success in 2009. I encourage employees to post their anonymous comments at http://www.rottenemployers.com or email me at jcgoad@rottenemployers.com
No person is worth that much money…..this is the problem with the economics of this country.
Greed…..period!
I am happy for the good people at Tootsie Roll. Tootsie Roll provides good jobs for thousands of people. As for anyone that hates a person for making money… all I have to say for that is get lost… move to a communist country. This is America where people have oppertunity! If you want to make that much money start your own company and work hard. Stop putting your hand out and start working!
Lowell, well said. Bite me, wake up the people who have been paying for the “socialist” agenda are starting to bite back.,
nobody is worth that much money? seriosuly, did Mose’s (obama) just write that?
not to mention – if you think this is a lot lets look into professional sports!
The husband and wife own a significant part of the company. There is nothing excessive about this move. As for the first poster, the Tootsie Roll employees should be happy to work for a successful company and have jobs. If they want to share in the profits, that’s what the stock market is for.
Tootsie Roll is one of the few candy companies still HQed in Chicago and still manufacturing candy in Chicago (as opposed to Mexico or Canada, where so many other candy/gum ops have moved). Plus, Tootsie Rolls are delicious! I just hope this latest news is not a signal that the Gordons are getting ready to retire…
To the Gordons:
THANK YOU for providing such as wonderful company headquartered in the Chicago market and providing many needed jobs. Whatever the board compensated you, you deserve double. Your “family-ownership” atmosphere and business savvy is a testament to your sucdess. Keep up the GREAT work!
-Signed,
The City of Chicago, the State of Illinois, your employees, and the Spirit of Capitalism and America
To the Gordons (if you’re reading this):
THANK YOU for providing such as wonderful company headquartered in the Chicago market and providing many needed jobs. Whatever the board compensated you, you deserve double. Your “family-ownership” atmosphere and business savvy is a testament to your sucdess. Keep up the GREAT work!
-Signed,
The City of Chicago, the State of Illinois, your employees, and the Spirit of Capitalism and America
Can someone explain this statement in the article?
“The Gordons’ base salaries are both capped at $999,999, the maximum that is tax-deductible.”
Jim – I have no basis for my response and am only assuming to have the answer to your question “The Gordons’ base salaries are both….tax-deductible” I believe that companies are allowed to pay executives up to $1,000,000 before the company is taxed additionally, or a tax “break”,is removed.
The employees are being compensated with excellent wages and benefits. In addition, they have the improved prospect of keeping great jobs because of this company’s success. The owner/managers make more because they have an immense amount of responsibility as well as capital in the business. If you wish to make similar amounts, start your own business and in the unlikely event you are successful, you can reap benefits like these. The vast majority of businesses fail well before they reach the scale of this company.
Please don’t tell how successful Tootsie Roll has been. The City and the county of Cook will try to tax it and have it move out of state. JC.
I completely agree with J. Charles Goad. It is great that tootsie roll has had so much success!!! but it would be nice to know that their employees are getting some kind of raise?? bonus?? YAY for tootsie roll!!! Congrats!!!
J. Charles Goad, I looked at your website, it is very interesting!!!! I have a few things to say, so check your email!!