It’s been over two weeks since Arthur T. Demoulas was fired as CEO of New England institution Market Basket, an action by the company’s board of directors that ended a nearly two decade-long stint as chief executive that was unique in many ways.
While the Market Basket board has alleged that Demoulas acted as a “dictator” and was uncooperative when it came to budgets and supposed plans to appoint his children as the next generation to lead the grocery store, workers and customers have generally viewed Demoulas — nicknamed Artie T. — in a positive light.
Will that change in light of Demoulas’ two firings during his tenure?
“His firing does raise a lot of questions about what this means to his legacy as CEO,” Boston Business Journal reporter Grant Welker said.
While many aspects of Demoulas’ legacy “don’t seem likely to change” in light of the two oustings, Welker wonders if business analysts will look upon his time as CEO differently.
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“Today, Arthur T.’s legacy, in a broader sense, is more complicated,” Welker said. “He’s been fired twice now for an alleged failure to get along with [the] board. There are other factors to consider in that, including the strained Demoulas family dynamics. But we do have two different boards that elected to remove him, even knowing of his popularity and success.”
So, what does that mean for the “business school application” of the Demoulas legacy?
“The bottom line to the story is that 11 years after he was fired the first time, it’s similar allegations that did him in,” Welker said. “It could be seen that he didn’t learn his lesson from the first time, or that he didn’t rein in his desire to be more unilateral in his decision-making.”
Still though, Welker said that his reputation is likely to remain a positive one among community members and workers. Demoulas has been known over the years to take the time to talk with associates at stores all over the region, remembering even small details of their lives. It’s one of the things that contributed to his popularity among store workers.
Demoulas and his family have also been known to lead charitable efforts, particularly in the Lowell area — the city where his family started the supermarket that would evolve into Market Basket over a century ago. Welker said that the Demoulas family often gives under the radar to local colleges, schools, youth groups, hospitals and churches.
“Throughout his tenure, he always prioritized employees through bonuses and profit sharing for shoppers at some of the lowest prices around,” Welker said. “He had always made it clear that he thought much of Market Basket’s profits are not his family’s to keep. But something that , at least in part, be returned to where it came from — that is, workers and customers.”
Despite concern from lawmakers and community members, Market Basket says it will keep the same hometown culture even after Demoulas has departed.
The interim CEO, Donald Mulligan, has been with the company for over 40 years. He was hired by Arthur T.’s father in the 1980s, and even walked out in support of Demoulas when he was first fired in 2014.
He was promoted to CFO in 1999 and has worked in that job since.
A search for a new, permanent CEO is presumable ongoing. It’s unclear if Mulligan is being considered for the position on a permanent basis. He is 70 years old.
Demoulas, as well executives who remained loyal to him, have denied the claims of the board of directors — calling the investigation a coverup for a “hostile takeover” of the supermarket company.
You can listen to our whole conversation with Welker on our podcast, Food Feud: Market Basket, available wherever you stream podcasts.