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Darden Restaurants

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{{#badges'''Darden''' bills itself as the “world’s largest full-service restaurant company,” operating 1,501 restaurants in the U.S. and Canada as of May 2014, including "837 Olive Garden, 464 LongHorn Steakhouse, 54 The Capital Grille, 52 Yard House, 38 Seasons 52, 37 Bahama Breeze, and 15 Eddie V's."<ref name="2014 10-K"/> This was down from 2,138 restaurants in 2013, largely due to the July 2014 sale of Red Lobster.<ref name="darden 10-K">Darden Restaurants Inc., [http: AEX|GlobalCorpWiki}}//darden.q4cdn.com/a9e715d8-de2c-43c8-81ab-65d3f7931b2a.pdf?noexit=true Form 10-K], 2013. </ref> Darden employs around 206,000 people, 196,000 of them hourly staff and served more than 400 million meals annually.<ref>Darden Restaurants, [http://www.darden.com/ website].</ref><ref name="2014 10-K"/>
Darden Restaurants trades on the New York Stock Exchange under '''DardenDRI''' bills itself as the “world’s largest full-service restaurant company,” operating 1,501 restaurants . Total sales in the U2012 were $8.S00 billion with $8. and Canada as of May 2014, including "837 Olive Garden, 464 LongHorn Steakhouse, 54 The Capital Grille, 52 Yard House, 38 Seasons 52, 37 Bahama Breeze, and 15 Eddie V's3 billion projected in 2013."<ref name="2014 darden 10-K"/> This was down from 2In 2014,138 total sales at Darden's remaining restaurants in 2013, largely due to the sale of Red Lobsterwas about $6.29 billion.<ref name="darden 2014 10-K"/>Darden Restaurants Inc's net income in 2014 was about $286 million, down significantly from $476 million in 2011.<ref>Bloomberg Businessweek, [http://dardeninvesting.q4cdnbusinessweek.com/a9e715d8-de2c-43c8-81ab-65d3f7931b2aresearch/stocks/financials/financials.pdfasp?noexitticker=true Form 10-K]DRI Darden Restaurants, 2013Inc. </ref> Darden employed around 206],000 peoplecompany profile, and served more than 400 million meals annually.<ref>Darden Restaurantsaccessed September 9, [http://www.darden.com/ website]2014.</ref>
Total sales in 2012 were $8.00 billion with $8.3 billion projected in 2013.<ref name=According to a report by Citizens for Tax Justice, which notes that "darden 10-Kthe federal corporate tax code ostensibly requires big corporations to pay a 35percent corporate income tax rate,"/> In 2014, total sales at Darden's remaining restaurants actual average tax rate from 2008-2010 was about $6.29 billiononly 17 percent.<ref name=>Robert J. McIntyre et al, "2014 [http://www.ctj.org/corporatetaxdodgers/CorporateTaxDodgersReport.pdf Corporate Taxpayers & Corporate Tax Dodgers 2008-10-K],"Citizens for Tax Justice and the Institute on Taxation and Economic Policy, November 2011. Accessed September 16, 2014.</ref>
''Fox Business'' reported in 2013 that Darden "spends more on campaign contributions than any of its peers other than the far larger McDonald’s."<ref name="fox">Matt Egan, "[http://www.foxbusiness.com/industries/2013/12/10/darden-political-spending-raises-eyebrows/ Darden's Political Spending Raises Eyebrows]," ''Fox Business'', December 10, 2013. Accessed September 9, 2014.</ref>
In 2011, Darden was fined for underpaying its employees and violating the Fair Labor Standards Act’s minimum wage and record keeping provisions.<ref>Sandra Pedicini, [http://articles.orlandosentinel.com/2011-04-24/business/os-cfb-restaurants-042511-20110424_1_darden-restaurants-olive-garden-restaurant-industry Darden fined by feds over Olive Garden], ''Orlando Sentinel'', April 24, 2011. </ref>
 
Access Darden Restaurants' corporate rap sheet compiled and written by ''Good Jobs First'' [http://www.corp-research.org/darden here].
__TOC__
===Embattled Darden Drops Red Lobster in "Fire Sale," CEO Resigns Under Investor Pressure===
[[File:‪Golden-Goodbye-Infographic.png‬|400px|thumb|right|Darden's Golden Goodbyes<br>Institute for Policy Studies<ref name="golden goodbyes"/>]]
In 2013 and 2014, Barington Capital Group and Starboard Value, activist investors in Darden, brought pressure against the company on a number of issues.<ref name="2.1 billion"/> The two hedge funds had argued that the company was being poorly managed and called for it to be broken up.<ref name="sale complete">Michael J. de la Merced, "[http://dealbook.nytimes.com/2014/07/28/with-sale-of-red-lobster-complete-c-e-o-of-darden-to-step-down/ With Sale of Red Lobster Complete, Chief of Darden Restaurants to Step Down]," ''New York Times'', July 28, 2014. Accessed September 9, 2014.</ref>
In December 2013 Howard Penney, a director at Hedgeye Risk Management focused on the restaurant industry, told ''Fox Business'', "It may not be apparent to a lot of people but I think the writing is on the wall. The structure of the company will not exist a year from today."<ref name="fox"/> In its May 2014 SEC filing, Darden even named the "actions of activist shareholders" and the "potential proxy contest for the election of directors" as "risk factors" that could potentially harm its business.<ref name="2014 10-K">Darden Restaurants, [http://www.sec.gov/Archives/edgar/data/940944/000094094414000064/dri-201410xk.htm#sBC0A5DB585EC6BCB00C5DD4B858C0C6E Form 10-K], SEC filing, May 25, 2014. Accessed September 9, 2014.</ref>
On May 16, 2014 Darden announced a plan to sell Red Lobster to Golden Gate Capital, an equity firm, for $2.1 billion. The ''New York Times'' described the deal as "perhaps the biggest rebuke so far to the activist investors, who have called for a more drastic breakup of the casual dining company. The deal does not require the approval of shareholders, making it unlikely that the disaffected hedge funds can stop the transaction."<ref name="2.1 billion">Michael J. de la Merced, "[http://dealbook.nytimes.com/2014/05/16/darden-to-sell-red-lobster-for-2-1-billion/ Darden to Sell Red Lobster in a $2.1 Billion Dea]," ''New York Times'', May 16, 2014. Accessed September 9, 2014.</ref> Darden planned to use $1 billion to pay down existing debt and an additional $700,000 to buy back stock. Representatives of Barington and Starboard complained that the price was too low, with Starboard executive Jeffrey Smith commenting "This board’s value-destructive and self-serving actions fly in the face of corporate democracy" and Barington CEO James Mitarotonda calling the deal a "fire sale."<ref name="2.1 billion"/> The sale was announced as completed on July 28, 2014.<ref>Darden Restaurants, [http://investor.darden.com/investors/news-releases/press-release-details/2014/Darden-Completes-Sale-Of-Red-Lobster-To-Golden-Gate-Capital/default.aspx Darden Completes Sale Of Red Lobster To Golden Gate Capital], corporate press release, July 28, 2014.</ref>
In Also in July 2014, the ''Orlando Business Journal'' reported that Barington Capital Group had proposed the company split the roles of CEO and chair and pressed for naming an independent board chair. Barington wrote in its proposal, "We believe that the combination of the chairman and CEO roles in a single person weakens a company’s corporate governance, which can harm shareholder value."<ref>Anjali Fluker, "[http://www.bizjournals.com/orlando/blog/2014/07/clarence-otis-fate-rests-in-hands-of-darden.html Clarence Otis’ fate rests in hands of Darden shareholders]," ''Orlando Business Journal'', July 8, 2014. Accessed September 9, 2014.</ref> According to ''USA Today'', Barington had repeatedly expressed concern about the company's "financial and operational performance" under Otis.<ref name="usa today">Roger Yu, "[http://www.usatoday.com/story/money/business/2014/07/28/darden-ceo-stepping-down/13289071/ Darden CEO Clarence Otis stepping down]," ''USA Today'', July 28, 2014. Accessed September 9, 2014.</ref>
ROC United, a non-profit organization that addresses workplace justice issues for restaurant workers, has said that "The activist investor strategy being pushed on Darden leadership follows the same asset-stripping playbook that has sunk other vulnerable restaurant chains." The group has advocated for Darden's 130,000 workers to "have a say in Darden’s future."<ref>ROC United, "[http://rocunited.org/darden-workers-demand-seat-at-the-table-during-uncertain-times-for-worlds-largest-full-service-restaurant-company/ Darden Workers Demand Seat at the Table During Uncertain Times for World’s Largest Full Service Restaurant Company]," press release, August 12, 2014. Accessed September 9, 2014.</ref>
On July 28, 2014 CEO Clarence Otis Jr. announced his resignation. He was replaced as chair by Charles Ledsinger Jr.<ref name="otis resigns"/> At that time, Darden also announced that it would only nominate nine directors to the board instead of twelve, leaving three seats to be filled by Starboard.<ref name="sale complete"/> ===Top Execs Paid $68 Million to Leave===[[File:Darden_golden_goodbyes.png|400px|thumb|right|Darden's Golden Goodbyes<br>Institute for Policy Studies<ref name="golden goodbyes"/>]]Three top-level executives pushed to resign in 2013 and 2014 each received generous "golden goodbyes" in the tens of millions of dollars. For former CEO Clarence Otis Jr., COO Andrew Madsen, and Chief Restaurant Operations Officer David Pickens, severance pay, awards, and accumulated retirement packages added up to $68 million, according to calculations made by the Institute for Policy Studies.<ref name="golden goodbyes">Sarah Anderson, "[http://www.ips-dc.org/wp-content/uploads/2014/10/Darden-executive-retirement-packages.pdf Darden's Golden Goodbyes]," Institute for Policy Studies, October 1, 2014. Accessed October 1, 2014.</ref><br>'''Compensation including cash severance, options and stock awards, and accumulated retirement funds:'''*Chief Executive Officer Clarence Otis, Jr.: $35,932,014*Chief Operations Officer Andrew H. Madsen: $20,778,762 *Chief Restaurant Operations Officer David T. Pickens: $11,671,024*Total: $68,381,799<ref name="golden goodbyes"/>  As the Institute for Policy Studies pointed out, at least 20 percent of Darden's workers are paid only the federal minimum tipped-worker wage of $2.13 per hour.<ref name="golden goodbyes"/> At that rate, it would take 8,110 years to earn the equivalent of Otis's "golden goodbye" package. Even at the median wage for tipped workers in the U.S., calculated at $10.22 by the Economic Policy Institute,<ref>Sylvia Allegretto and David Cooper, "[http://www.epi.org/publication/waiting-for-change-tipped-minimum-wage/ Waiting for Change]," Economic Policy Institute, July 10, 2014. Accessed October 1, 2014.</ref> a worker would have to put in 40 hours per week, 52 weeks per year, for 1690 years to earn the $35.9 million Otis was paid for resigning his job.[[File:Years_to_golden_goodbye.png|450px|thumb|right|Time to Golden Goodbye by Wage Level<br>Calculated by Center for Media and Democracy, October 2014]] ===Investor Issues Scathing Report on Darden's Management=== In September 2014, Starboard published an internal shareholder document highly critical of Olive Garden's entire operation, laying out the hedge fund's alternative management plans, and asking shareholders to vote in favor of Starboard's leadership in the board.<ref name="starboard powerpoint">Starboard Value LP, "[http://shareholdersfordarden.com/wp-content/uploads/2014/09/Transforming-Darden.pdf Transforming Darden Restaurants]," shareholder presentation, September 11, 2014. Accessed September 17, 2014.</ref> The report, in the form of a 300-slide PowerPoint presentation, was described by the ''Washington Post'' as "one of the longest activist slide presentations in recent memory,"<ref>David Benoit, "[http://blogs.wsj.com/moneybeat/2014/09/12/starboards-olive-garden-slides-salting-the-water-custom-straws-and-more/ Starboard’s Olive Garden Slides: Salting the Water, Custom Straws and More]," ''Washington Post'', September 12, 2014. Accessed September 17, 2014.</ref> While a significant part of the report focused on food quality and a lack of "Italian authenticity" at the chain, Starboard also claimed that "Darden has massively underperformed peers" and complained of its "history of abysmal corporate governance" and " poor management and failed execution."<ref name="starboard powerpoint"/> Media coverage of the report highlighted its dismal assessment of Olive Garden's food, which ''Slate'' called "the mother of all food reviews" and described it as "tearing apart Darden Restaurants."<ref>Jordan Weissman, "[http://www.slate.com/blogs/moneybox/2014/09/12/olive_garden_doesn_t_salt_its_pasta_water_investors_reveal_a_culinary_crime.html Olive Garden Has Been Committing a Culinary Crime Against Humanity]," ''Slate'', September 12, 2014. Accessed September 17, 2014.</ref> As described by the ''Wall Street Journal'', Starboard "spent several pages describing what it considered a lack of Italian heritage, criticizing a menu that had expanded to include Spanish tapas and burgers and a kitchen decision to stop salting the water for its pasta. Starboard also warned the company's management was wasting millions delivering more breadsticks than customers normally eat."<ref name="benoit starboard"/> Buzzfeed turned the presentation into a list of "16 Reasons One Hedge Fund Thinks Olive Garden Is Kind Of A Total Disaster," including menu items that "make no sense" and are not Italian, asparagus that is "too long," and slow service.<ref>Mariah Summers, "[http://www.buzzfeed.com/mariahsummers/16-reasons-one-hedge-fund-thinks-olive-garden-is-kind-of-a-t#11pldyk 16 Reasons One Hedge Fund Thinks Olive Garden Is Kind Of A Total Disaster]," Buzzfeed, September 12, 2014. Accessed September 23, 2014.</ref> Comedian John Oliver created a mock ad inspired by the report, finishing with the tagline, "When you're here... Why are you here?" {{#ev:youtube|qJxnAR8Vs0I|210|left|John Oliver on Starboard Value report|frame}}However, as the ''New Yorker'' noted, "While the Olive Garden section of the presentation focusses on making meals more Italian, in part by using more traditional Italian ingredients, another portion of the plan urges Olive Garden to lower food costs. Though Starboard is sure that Darden can do both at once, the goals seem to be at odds with each other."<ref>Vauhini Vara, "[http://www.newyorker.com/business/currency/whats-deal-olive-garden What’s the Deal with Olive Garden?]," ''New Yorker'', September 15, 2014. Accessed September 23, 2014.</ref> Some of Starboard's suggestions would essentially raise profit margins by paying workers less. The hedge fund calls for "Delivering a better guest experience through enhanced labor," which would include "Chang[ing] the front-of-the-house service to rely more on tipped servers, less on higher-salaried or higher-wage bussers and food runners."<ref name="starboard powerpoint"/>  The report also details Starboard's proposal to "create approximately $1 billion in shareholder value" by restructuring the company's real estate holdings. Starboard refers to Darden's ownership of the land and buildings its restaurants occupy as a "real estate opportunity," claiming that separating the real estate could "create ~$6 - $10 of value per share."<ref name="starboard powerpoint"/>  Starboard's slideshow can be seen [http://shareholdersfordarden.com/wp-content/uploads/2014/09/Transforming-Darden.pdf '''here'''.] In response, Darden issued its own report defending its management, according to the ''Wall Street Journal''. In its response, "Darden says it is focused on selling more wine, one of the bigger opportunities Starboard had pointed to last week in a nearly 300-page presentation. Darden also says it is cutting costs, planning to save $50 million on food costs and looking for more. Starboard said Darden could cut some $75 million in supply and food costs a year."<ref name="benoit starboard">David Benoit, "[http://online.wsj.com/articles/darden-starboard-tussle-over-dough-1410794658 Darden, Starboard Tussle Over Dough]," ''Wall Street Journal'', September 15, 2014. Accessed September 23, 2014.</ref>
===Opposition to Paid Sick Days===
Darden has fought hard against new laws and regulations on paid sick days policies, which would allow workers to stay at home when sick without risking their paycheck or their job. In Florida, Darden helped write and pass a bill that would ban local governments from requiring paid sick days for workers. <ref>Ashley Lopez, [http://fcir.org/2013/04/25/florida-senate-may-consider-houses-more-restrictive-anti-sick-pay-bill/ Florida Senate May Consider House’s More Restrictive Anti-Sick Pay Bill], Florida Center for Investigative Reporting, April 25, 2013. </ref> <ref>Aaron Deslatte, [http://www.orlandosentinel.com/news/blogs/political-pulse/os-senate-waters-down-orangeinspired-sickleave-bill-removes-living-wage-preemption-20130425,0,2856474.post Senate waters down Orange-inspired sick-leave bill, removes 'living wage' preemption], ''Orlando Sentinel'', April 25, 2013. </ref> Forty percent of all workers do not have paid sick days; existing federal law covers only employees working 25 hours or more at businesses with at least 50 workers, applies only to serious and not routine illnesses, and is unpaid.<ref>Esmé E. Deprez, [http://www.bloomberg.com/news/2013-03-22/coughing-cooks-stay-home-as-u-s-cities-require-paid-sick-leave.html Coughing Cooks Stay Home as U.S. Cities Require Paid Sick Leave], ''Bloomberg'', March, 21, 2013. </ref>
 
==Lawsuits, Fines, and Violations==
 
===U.S. Equal Employment Opportunity Commission Sues Darden for Age Discrimination (2015)===
 
On February 12, 2015, the U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Darden Restaurants, alleging the company had committed age discrimination in hiring at its Seasons 52 restaurants. The suit claims that Darden and four Florida affiliates violated the Age Discrimination in Employment Act by "disproportionately deny[ing] jobs at new Seasons 52 restaurants to applicants aged 40 and above," as described by ''Reuters''. The complaint stated, "Defendants' hiring officials have told unsuccessful applicants in the protected age group that: 'you are too experienced'; 'we are looking for people with less experience'; 'we are not looking for old white guys'; 'we are looking for "fresh" employees'; and that Seasons 52 wanted a 'youthful' image." A spokesperson for Darden denied the allegations and indicated that Darden "will defend this claim vigorously."<ref>Jonathan Stempel, "[http://www.reuters.com/article/2015/02/12/darden-lawsuit-idUSL1N0VM25R20150212 U.S. agency claims Darden won't hire 'old white guys' for dining chain]," ''Reuters'', February 12, 2015.</ref>
 
===ROC United Class Action Suit, 2012-present===
 
In January 2012, ROC United filed a class action suit on behalf of workers at Darden's Capital Grille in Chicago, New York City, and Washington, DC, alleging racial discrimination and violations of state and federal wage and hour laws.<ref>ROC United, "[http://rocunited.org/roc-launches-natl-campaign-for-dignity-at-capital-grille-red-lobster-olive-garden/ ROC LAUNCHES NAT’L CAMPAIGN FOR DIGNITY AT CAPITAL GRILLE, RED LOBSTER, OLIVE GARDEN!]," press release, January 31, 2012. Accessed September 9, 2014.</ref> As of September 2014, the cases had been split into 5 separate jurisdictions, but were still pending.<ref>Dignity at Darden, [http://www.dignityatdarden.org/darden-complaint.html Litigation], organizational website, accessed September 9, 2014.</ref>
 
===NY AG Investigates Darden for Debit Card Pay System===
 
The ''Orlando Sentinel'' reported in October 2013 that Darden, along with some 40 other companies, was being investigated by the New York attorney general over its use of payroll debit cards to pay employees.<ref>Sandra Pedicini, "[http://articles.orlandosentinel.com/2013-10-06/business/os-cfb-cover-payroll-cards-20131006_1_debit-cards-payroll-cards-such-cards More companies opt to give workers payroll debit cards]," ''Orlando Sentinel'', October 6, 2013. Accessed September 9, 2014.</ref> The cards have come under fire for charging high user fees for things like ATM withdrawals, balance statements, and even inactivity.<ref>Jessica Silver-Greenberg and Stephanie Clifford, "[http://www.nytimes.com/2013/07/01/business/as-pay-cards-replace-paychecks-bank-fees-hurt-workers.html?pagewanted=all Paid via Card, Workers Feel Sting of Fees]," ''New York Times'', July 1, 2013. Accessed September 9, 2014.</ref>
 
===Federal Investigations Lead to Fines, Back Pay, 2011===
 
After a U.S. Department of Labor investigation of an Olive Garden in Mesquite, Texas found Darden hadn't paid workers for all their hours, Darden agreed to pay $25,000 in back pay and $30,800 in fines. Another investigation of a Red Lobster in Lubbock, Texas resulted in Darden paying $27,000 in back pay and $23,980 in fines, according to a report by the Corporate Research Project.<ref name="darden rap sheet"/>
 
===In 2008, Darden Pays $4.7 Million to Settle Three Wage and Hour Lawsuits===
 
A report by the Corporate Research Project found that Darden had spent $4.7 million to settle three different wage and hour lawsuits in California, two of which alleged violations of state law for "requiring servers and bartenders to make up for cash shortages at the end of their shifts," and the third claiming multiple violations "including a failure to provide itemized wage statements and timely pay when an employee was terminated."<ref name="darden rap sheet"/>
 
===$9.5 Million Settlement for CA Wage and Hour Suit, 2005===
 
According to a report by the Corporate Research Project, in 2005 Darden paid $9.5 million to settle a class action suit involving 20,000 current and former servers at Olive Garden and Red Lobster restaurants in California. The lawsuit claimed " that the restaurants violated state labor regulations by preventing workers from taking required breaks and by requiring them to purchase and maintain their uniforms."<ref name="darden rap sheet">Philip Mattera, "[http://www.corp-research.org/darden Darden Restaurants: Corporate Rap Sheet]," Corporate Research Project, accessed September 9, 2014.</ref>
==Lobbying and Political Contributions==
 [[Image:Sheila_down_with_darden350.jpg|thumb|right|350px|ROC members and allies during Darden Restaurants Inc annual shareholder's meeting in Orlando, FL]] In December 2013, ''Fox Business'' reported that Darden "spends more on campaign contributions than any of its peers other than the far larger McDonald’s."<ref name="fox">Matt Egan, "[http://www.foxbusiness.com/industries/2013/12/10/darden-political-spending-raises-eyebrows/ Darden's Political Spending Raises Eyebrows]," ''Fox Business'', December 10, 2013. Accessed September 9, 2014.</ref> According to the Corporate Research Project, "Until 2007 Darden spent less than $250,000 a year on federal lobbying. Beginning in 2008 that amount jumped to well over $1 million annually."<ref name="darden rap sheet"/>
According to Open Secrets, Darden spent $1,320,000 on lobbying in 2013, $1,280,000 in 2012, and $1,450,000 in 2011. It had spent $610,000 through July 2014.<ref>[http://www.opensecrets.org/orgs/summary.php?id=D000021949 Darden Restaurants: Summary], Opensecrets.org, September 9, 2014. </ref>
As of August 19, Darden had spent $610,350 on political contributions for the 2014 election cycle, with 45% going to Democrats and 54% to Republicans. The majority ($552,000) was given to PACs.<ref>Center for Responsive Politics, [http://www.opensecrets.org/orgs/totals.php?id=D000021949&cycle=2014 Darden Political Spending, 2014], Open Secrets, accessed September 9, 2014.</ref> Top individual recipients were [[Ron Wyden]] (D-OR), [[John Boehner]] (R-OH), Vernon Buchanan (R-FL), and Steny H. Hoyer (D-MD).<ref>Center for Responsive Politics, [http://www.opensecrets.org/orgs/toprecips.php?id=D000021949&cycle=2014 Darden Recipients, 2014], Open Secrets, accessed September 9, 2014.</ref>
Through the end of 2013, Influence Explorer reports that the Darden had spent $3,512,349 on political campaigns, with 66% going to Republicans and 29% going to Democrats.<ref>[http://influenceexplorer.com/organization/darden-restaurants/edef9d4cf48346cbb64d7414e3cccde3 Darden Restaurants], Influence Explorer, September, 2013. </ref> Top recipients included former U.S. Rep. [[Bill McCollum ]] (R-Fl), former U.S. Rep. [[Ric Keller ]] (R-Fl), former Sen. [[Connie Mack ]] (R-Fl) (who now serves on the board of directors of Darden)<ref name="2014 10-K"/>, and former Presidential candidate and Gov. [[Mitt Romney ]] (R). Connie Mack  The majority of NRA PAC contributions (90%) go to federal entities. Top PAC recipients include: Republican Party of Florida, [[National Republican Senatorial Committee]], and the [[National Republican Congressional Committee]]. ==Corporate Subsidies==
The majority Based on data compiled by Good Jobs First in its Subsidy Tracker, since 2006 Darden has received at least 36 subsidies worth a total of NRA PAC contributions (90%) go $5,969,060, including tax rebates and abatements, grants, and low-cost loans. A 2014 report by Good Jobs First notes Darden as one of the large low-wage corporations that receives significant subsidies. As the report explains,:"Such subsidies—in the form of business property tax abatements, corporate income tax credits, sales tax exemptions, training grants, infrastructure improvements and the like—are supposed to federal entitiespromote job creation and broad-based economic growth. Top PAC recipients includeYet they are often awarded to profitable, growing companies that do not need tax breaks to finance a project, meaning that the subsidies serve mainly to increase profits. When these companies are owned in whole or substantial part by wealthy individuals or families—true of many large U.S. corporations—the subsidies are serving to enlarge those private fortunes: Republican Party of Floridadirectly in privately held firms or through stock price appreciation and dividends in publicly traded ones."<ref> Philip Mattera, National Republican Senatorial CommitteeKasia Tarczynska and Greg LeRoy, "[http://www.goodjobsfirst.org/sites/default/files/docs/pdf/taxbreaksandinequality.pdf Tax Breaks and Inequality Enriching Billionaires and Low-Road Employers in the National Republican Congressional CommitteeName of Economic Development]," Good Jobs First, December 2014. Accessed January 5, 2015.</ref>
==Ties to ALEC and the National Restaurant Association (NRA)==
Darden told CMD had been a member of the [[ALEC Boards and Task Forces#"Private Enterprise" Board of Directors|ALEC corporate board]] as of 2010.<ref>American Legislative Exchange Council, [http://web.archive.org/web/20100210053336/http://www.alec.org/AM/Template.cfm?Section=Private_Enterprise_Board&Template=/CM/HTMLDisplay.cfm&ContentID=12553 Private Enterprise Board], organizational website, archived in the WayBack Machine on February 10, 2010, accessed September 2012</ref> In April 2013 Darden spokesperson Rich Jeffers confirmed that they dropped their membership the company cut ties with ALEC in January 2010in order to allocate more resources to organizational connections like its involvement with the National Restaurant Association<ref>Rich Jeffers, Director of Media Relations, Darden Restaurants, telephone conversation with the Center for Media and Democracy, April 11, 2013. </ref><ref>Rebekah Wilce, [httphttps://www.prwatch.org/news/2013/04/12055/darden-restaurants-dumps-alec-favor-alec-affiliated-group Darden Restaurants Dumps ALEC in Favor of ALEC-Affiliated Group], PRWatch.org, September, 2013. </ref> (which, like ALEC, has lobbied to override local paid sick day ordinances).<ref>Brendan Fischer and Mary Bottari, [https://www.prwatch.org/news/2013/04/12037/efforts-deliver-kill-shot-paid-sick-leave-tied-alec Efforts to Deliver "Kill Shot" to Paid Sick Leave Tied to ALEC], ''PRWatch.org'', April 3, 2013.</ref> Please see [[Corporations that Have Cut Ties to ALEC]] for more. [[Bob McAdam|Robert McAdam]] is , who was hired in 2006 as Darden’s head of government affairs and , was on the board of ALEC from 2008 to 2010.<ref>[http://web.archive.org/web/20100210053336/http://www.alec.org/AM/Template.cfm?Section=Private_Enterprise_Board&Template=/CM/HTMLDisplay.cfm&ContentID=12553 Private Enterprise Board], ALEC.org, September, 2013.</ref> In 1992, McAdam worked at the [[Tobacco Institute]] and attended an ALEC meeting in Colorado Springs.<ref>[http://legacy.library.ucsf.edu/tid/att00g00/pdf The Tobacco Institute], University of California, San Francisco. </ref> McAdam was elected to the board of directors of the [[National Restaurant Association]] (NRA) in 2011.<ref name="darden rap sheet"/><ref>National Restaurant Association, "http://www.restaurant.org/Pressroom/Press-Releases/National-Restaurant-Association-Elects-New-Members National Restaurant Association Elects New Members to Serve on Board of Directors]," press release, June 13, 2011. Accessed September 9, 2014. </ref>
In its lobbying disclosure, the NRA lists Darden as one of its national corporate members,<ref>[http://www.restaurant.org/About-Us National Restaurant Association website], September, 2013. </ref> and the NRA gave Darden a diversity award in 2007. <ref>[http://www.restaurant.org/pressroom/ National Restaurant Association Pressroom], September, 2013. </ref> In 2008, then-Darden CEO Clarence Otis Jr. addressed members at the NRA annual meeting on public affairs. <ref>[http://www.restaurant.org/pressroom National Restaurant Association Announces Speakers for 2008 Public Affairs Conference], September, 2013. </ref> In 1992, McAdam worked at the Tobacco Institute and attended an ALEC meeting in Colorado Springs.<ref>[http://legacy.library.ucsf.edu/tid/att00g00/pdf The Tobacco Institute], University of California, San Francisco. </ref>
{{about_ALEC}}
==Head of Government Affairs Ties to Tobacco==
[[Image:Bob.jpg|thumb|right|140px|Bob McAdam]][[Bob McAdam|Robert “Bob” S. McAdam ]] became Senior Vice President, Government and Community Affairs for Darden Restaurants in December 2006.<ref name="bobsbio">[http://www.darden.com/pdf/bio/bio_rmcadam.pdf Robert S. McAdam bio], Darden website, Accessed September 2013. </ref> He oversees government and environmental affairs, foundation and community affairs, and media and communications. McAdam’s biography at Darden mentions his work as a campaign manager and grassroots organizer at the state and local level, and notes that he has worked at [[Walmart ]] where he undertook “critical business initiatives, and improved local government and community relations critical to opening new stores.”
At Walmart in the mid 2000s, McAdam ran the war room, which was created to counter criticism from small business owners and unions.<ref>Michael Barbaro, [http://www.nytimes.com/2005/11/01/business/01walmart.ready.html?pagewanted=print A New Weapon for Wal-Mart: A War Room ], ''The New York Times'', November 1, 2005. </ref> McAdam told the NY Times that Wal-Mart "has to run a campaign.” He added, “It's simply nonsense for us to let some of these attacks go without a response." The war room was a departure from prior policies, as Wal-Mart has traditionally spent little on public relations.
McAdam’s biography at Darden mentions that he was an employee at the public relations firm Fleishman-Hillard, with industry associations, and was formerly a staffer in the U.S. House of Representatives.
His biography makes no mention of his work at the [[Tobacco Institute]], <ref name="darden rap sheet"/> where he ran their states activities, meaning his job was to beat back taxes and regulations on tobacco. There are over 400 files in the Legacy Tobacco Documents that list his name.<ref>[http://legacy.library.ucsf.edu/action/search/basic?fd=0&q=%22robert+mcadam%22&df=er&c=at&c=ba&c=bw&c=tc&c=ca&c=ct&c=da&c=ga&c=lm&c=ll&c=mg&c=mm&c=pm&c=py&c=rj&c=re&c=ti&c=ub&c=us Legacy Tobacco Documents], University of California, San Francisco. </ref>
==Questionable Ranking by Fortune==
===Former CEO Clarence Otis Jr.===
Clarence Otis Jr. is was Darden’s CEO from 2004 to 2014 and Chairman of the Board. Otis has a rags from 2005 to riches story and was presented with a Horatio Alger award.<ref name="bio">[http://www.darden.com/pdf/bio/bio_cotis.pdf Clarence Otis Jr. Bio], Darden.com, Accessed September, 2013.</ref> He grew up in Watts, a poor, predominantly African-American section of Los Angeles that exploded in riots in the sixties and after the Rodney King decision.<ref name="Otis">Mark Chediak, [http://articles2014.orlandosentinel.com/2008-11-02/news/otisbio02_1_otis-economic-development-gilley Darden chief Clarence Otis is active in the Orlando-area business and arts community], ''Orlando Sentinel'', November 2, 2008.</ref> Otis's His total compensation for 2014, his final year as CEO, was $6,980,147, including $1,204,512 base salary and $4,612,995 in stock and options.<ref name="2014 10-Kproxy"/>
Otis announced his resignation as CEO and chair on July 28, 2014. According to the ''Orlando Business Journal'', investors had been calling for his resignation for several months. At that time, the roles of CEO and chair were separated and [[Charles Ledsinger, Jr.]] was appointed independent chair.<ref name="otis resigns">Anjali Fluker, "[http://www.bizjournals.com/orlando/blog/2014/07/breaking-darden-s-clarence-otis-resigns-as.html?page=all Breaking: Darden’s Clarence Otis resigns as chairman and CEO, new independent chairman named]," ''Orlando Business Journal'', July 28, 2014. Accessed September 9, 2014.</ref>
[[Image:Otis202.jpg|thumb|right|202px|Clarence Otis Jr.]]
Otis was the valedictorian grew up in Watts, a poor, predominantly African-American section of his high school and is reported by friends and family to be an incredibly hard workerLos Angeles.<ref name="Otis">Mark Chediak, [http://articles.orlandosentinel.com/2008-11-02/news/otisbio02_1_otis-economic-development-gilley Darden chief Clarence Otis is active in the Orlando-area business and arts community], ''Orlando Sentinel'', November 2, 2008.</ref> He graduated from Stanford Law and practiced in securities before moving into finance.<ref name="sarahhale">Sarah Hale Meitner, [http://articles.orlandosentinel.com/2004-12-26/news/0412260198_1_otis-darden-smokey-bones New Ceo Sits At Head Of Darden Table], ''Orlando Sentinel'', December 26, 2004. </ref> He joined Darden in 1995, became CEO in 2004, and Chairman of the Board of Directors in 2005.<ref name="bio"/> In the Orlando area, Otis has served on the board of the Association to Preserve the Eatonville Community. He has been praised by the Executive Director of the Association for helping to raise the profile of the group’s annual Zora Neale Hurston Festival, and has hosted some of their artists at his home.<ref name="Otis"/> Otis has also been lauded by the CEO of his local development commission for helping to lure the Burnham Institute to his local area for securing funding for the UCF College of Medicine. He has recruited minority business leaders and companies to the Orlando area.<ref name="Otis"/> Otis is married to Jacqueline Bradley a former banking executive at Sun Trust and now a stay at home mother.<ref>[http://www.restaurantmagazine.com/darden-restaurants-ceo-clarence-otis-jr-has-a-lot-on-his-plate/ Darden Restaurants CEO Clarence Otis Jr. has a lot on his plate], Restaurant Magazine, Accessed September, 2013.</ref> They have three children: Calvin, age 23, and twin daughters Allison and Randall, age 20.<ref name="sarahhale"/> The family lives in Isleworth, which is also home to professional athletes, entrepreneurs, and heads of business.<ref name="Otis"/> Otis and his wife are very active in the arts and have sponsored a fundraiser for the Orlando Philharmonic at their home. They attend services at The Life Center Church in Eatonville.<ref name="sarahhale"/>
Together, Otis and is married to Jacqueline Bradley have one of the most extensive private collections of African-American art, a former banking executive at Sun Trust.<ref name="Otis">[http://www.restaurantmagazine.com/> With over 100 pieces, the collection includes renowned Africandarden-restaurants-ceo-clarence-otis-jr-has-a-lot-on-his-American artistsplate/ Darden Restaurants CEO Clarence Otis Jr. has a lot on his plate], including Romare BeardonRestaurant Magazine, Sam GilliamAccessed September, and William Johnson2013.</ref name="sarahhale"/>
In the Orlando area, Otis also serves has served on the board of directors boards of the Association to Preserve the Eatonville Community, The Metro Orlando Economic Development Commission, VF Corporation, Verizon Communications, Inc., the Federal Reserve Bank of Atlanta, and the Central Florida YMCA.<ref name="bio"/> His He is an honorary member of the Mennello Museum of American Art.<ref name="Otis"/>
[[Image:Sheila_down_with_darden350.jpg|thumb|left|350px|ROC members and allies during Darden Restaurants Inc annual shareholder's meeting in Orlando, FL]]
Otis is a speaker for Celebrity Talent Promotions, where he is categorized on their website as a business speaker and CEO.<ref>[http://www.athletepromotions.com/celebrity/Clarence-Otis-appearance-booking-agent.php Clarence Otis Speaker], Celebrity Talent Promotions, Accessed September, 2013. </ref> In November 2011, he gave a talk at the Emory University business school on corporate social responsibility.<ref>Goizueta Newsroom, [https://newsroom.goizueta.emory.edu/gnr/2011/11/04/otis-talks-corporate-social-responsibility/ Otis Talks Corporate Social Responsibility], Emory Goizueta Business School, November 4, 2011. </ref>
In 2011, he wrote a piece for CNN bemoaning regulations related to health care and their impact on jobsmandatory sick leave for workers.<ref name="otisquote">Clarence Otis Jr., [http://www.cnn.com/2011/12/06/opinion/otis-regulations-job-creation/?hpt=us_mid What's stopping job creation? Too much regulation], ''CNN'', December 6, 2011. </ref> According to Otis:
<blockquote>Regulatory mandates flowing from federal health care reform may be the most visible, but the list also includes measures such as new mandatory paid leave provisions that require us to change the way we accommodate employees who need to take time off when they are ill and ever more unrealistic requirements regarding employee meal and rest breaks that, in California for example, force our employees to take breaks in the middle of serving lunch or dinner.
* Eugene Lee, President, COO: $2,710,591t otal compensation for 2014
* Dave Lothrop, Senior Vice President, Corporate Controller
* [[Bob McAdam|Robert McAdam]], Senior Vice President, Government and Community Affairs
* Daisy Ng, Senior Vice President, Chief Human Resources Officer
* Matt Park, Senior Vice President, Chief Marketing Officer
* William M. Lewis Jr. Managing Director and Co-Chairman of Investment Banking for Lazard Ltd., an investment banking firm.
* Connie Mack III (legal name: Cornelius McGillicuddy, III), Partner and senior policy advisor for Liberty Partners Group, a public policy consulting firm. Former U.S. Senator.
* Michael D. Rose , Private investor and Chairman of the Board of Midaro Investments, Inc., a privately held investment firm. * Maria A. Sastre , President and Chief Operating Officer of Signature Flight Support Corporation, a fixed based operation and distribution network for business aviation services. * William S. Simon , Executive Vice President of [[Wal-Mart ]] Stores, Inc., a global retailer, and President and Chief Executive Officer of Walmart U.S.
==Contact==
==Related PRWatch articles==
Brendan Fischer, [httphttps://www.prwatch.org/news/2013/04/12037/efforts-deliver-kill-shot-paid-sick-leave-tied-alec Efforts to Deliver "Kill Shot" to Paid Sick Leave Tied to ALEC], April 3, 2013.<br>Mary Bottari, [httphttps://www.prwatch.org/news/2013/07/12173/other-nra-national-restaurant-association-pushes-preemption-paid-sick-days The "Other NRA," the National Restaurant Association, Pushes Preemption of Paid Sick Days], July 24, 2013.<br>Rebekah Wilce, [httphttps://www.prwatch.org/news/2013/04/12055/darden-restaurants-dumps-alec-favor-alec-affiliated-group Darden Restaurants Dumps ALEC in Favor of ALEC-Affiliated Group], April 15, 2013.
==External Articles==
<references/>
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