The Financial Toll of Chipotle’s Troubles

Now that the saga of Chipotle’s food safety issues, stock market tumbles, and attempts to win back loyalty are finally dying down (or so it seems), it’s reasonable to ask: what exactly was the cost of that widely publicized downfall? When a company sees a 25% drop in shares, and a 14% decrease in sales in one quarter, what does it actually cost the executives behind the brand?

In Chipotle’s case, it meant about a 50% decrease in profits for the two CEOs, Steve Ells and Monty Moran – or 15 million dollars each. While that is a steep hit, it’s worth keeping in mind that the two are among the highest paid executives in America, each reportedly earning more than the heads of McDonalds, Starbucks and Panera combined prior to 2015. So it stands to reason that Ells and Moran will weather the storm – even if the company’s struggles continue.

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