Chipotle Mexican Grill is under heavy fire from a shareholder group known for successfully challenging excessive executive compensation.

“Chipotle is becoming a poster child for pay-for-performance failures,” said Michael Pryce-Jones, a senior governance policy analyst with CtW Investment Group, which works with union pension funds overseeing $250 billion in assets.

The top five executives at Chipotle pulled down $67.3 million last year, according to the company’s proxy. That is 42 percent more than what Coca-Cola’s executive team made and nearly matched the executive pay at General Electric, a global conglomerate with 45 times the revenues of Chipotle, CtW argued in a letter filed with the U.S. Securities and Exchange Commission Monday.

The group is urging shareholders to vote no on a “say-on-pay” measure this year.

Chipotle employs two co-CEOs, founder Steve Ells and Monty Moran. Ells made $25.1 million in total compensation last year, while Moran pulled down $24.4 million.

Chipotle shareholders are paying 10 times the median for CEO duties compared with a peer group of companies, CtW said.

“The compensation committee of our board is reviewing that filing and taking it under consideration,” Chipotle spokesman Chris Arnold said.

The company defends its corporate practices by pointing to the strong returns it has given shareholders since 2008 — about four times as much as the S&P 500 index. Arnold notes Chipotle’s shares overall are up 2,200 percent from $22 a share at its January 2006 IPO to a close of $507.60 on Thursday.

Pryce-Jones doesn’t dispute the fast-casual restaurant chain’s strong performance, but even allowing for that, the equity grants remain outsized and the bar for obtaining them unusually low, he said.

Equity awards given to Ells and Moran the past three years are now worth about $300 million, he said. And unlike many executives, the two have actively sold off their holdings.

Chipotle also continues to provide perks that many firms have increasingly abandoned, such as car and housing allowances, Pryce-Jones said.

Moran received about $25,000 to pay for his children’s private schooling, something usually reserved for executives taking overseas assignments. Chief financial officer Jack Hartung received more than $50,000 to cover commuting expenses, mostly airline tickets, and $30,000 for housing expenses, even though he has had 12 years to relocate to Denver.

“What irks investors is that this shows the board has the wrong mentality,” said Pryce-Jones.

Normally, shareholder activists would also try to vote out directors on the compensation committee, but none are up for election this year, he said.

Chipotle has worked hard to foster a progressive image, buying its food from local, sustainable and organic sources and giving jobs and English lessons to refugees relocating from other countries.

“That is one of the biggest ironies,” Pryce-Jones said. “When you have a CEO making 800 times the typical employee, they are seriously at risk of undermining their employee culture.”

About 10 percent of shareholders usually vote no on “say-on-pay” proposals, and Chipotle saw a 27 percent no vote last year. CtW thinks its lobbying can get 40 or 50 percent when shareholders gather in Denver May 15, sending a strong rebuke the board can’t ignore.

“Basically, we are expecting a big showdown at the annual meeting,” Pryce-Jones said.

Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or twitter.com/aldosvaldi

Chipotle draws fire for big executive pay

Executive2013 Compensation2012 Compensation Steve Ells, Co-CEO/Chairman$25.1 million$19.7 millionMonty Moran, Co-CEO$24.4 million$19.1 millionJack Hartung, CFO$9.9 million$6.8 millionBob Blessing, former Chief Development Officer$2 million$2.5 millionMark Crumpacker, Chief Marketing and Development Officer$5.9 million$2.5 million

Source: Chipotle Mexican Grill proxy filing with SEC