Hormel Foods Corporation (NYSE:HRL) Q1 2023 Earnings Call Transcript

Jim Snee: Yes. So Adam, I mean, the flow of the product through the sales side really hasn’t changed. And we’ve had the bacon example you mentioned, we’ve had it going into retail, and we’ve had it going into foodservice the same way that we always have. If anything, this structure actually centralizes and creates less confusion in terms of who has responsibility with — Deanna now overseeing retail. And it’s really, really helpful. We do have elements of our incentive that are — that do take into account return on invested capital. We use that more as a modifier to make sure that the team continues to keep an eye on that because we know how important it is. But we’re not — we don’t have any plans to change the rate of that as an element of compensation. We feel like we’ve got the proper oversight to drive improvement over time.

Jacinth Smiley: Yes. And just for — just to clarify or just to emphasize, the GoFWD structure hasn’t in any way mudded up the waters in terms of how we look at the business and how incentives are aligned to drive the results. It actually does a complete opposite. And now there is very clear delineation and transparency in terms of objectives in driving the results and the outcome for the business.

Operator: Ladies and gentlemen, this does conclude your conference call for today. We thank you for your participation and ask that you please disconnect your lines.