You are here
ZAANDAM, The Netherlands - Ahold opened its shareholders meeting today with a statement that Jim Miller will be replaced as president and c.e.o. of the embattled U.S. Foodservice, which has been the subject of a sweeping forensic probe stemming from revelations earlier this year that the Columbia, Md.-based foodservice distributor overstated its 2001 and 2002 profits by a half-billion dollars.
Last week, the plot thickened when the overstatements increased to approximately $880 million in light of new results relating to forensic accounting work conducted by PricewaterhouseCoopers. Miller, who denied any wrongdoing since the accounting scandal surfaced, served as president and c.e.o. of U.S. Foodservice since 1997, and was appointed to Ahold's executive board in 2001.
Robert G. Tobin will serve as interim c.e.o. until is a replacement is found for Miller. Tobin, a member of Ahold's supervisory board since 2001, is the former chairman and c.e.o. of Stop & Shop, which he joined in 1960. In 1998, he was appointed president and c.e.o. of Ahold USA as well as to Ahold's executive board, from which he retired in 2001. Miller has agreed to assist Tobin in the transition.
The internal legal investigation into accounting irregularities at U.S. Foodservice and the possible involvement of U.S. Foodservice personnel continues in close cooperation with the PricewaterhouseCoopers' forensic accounting work.