NEW YORK (AP) - PepsiCo's Indra Nooyi received compensation valued at $14.7
million in 2007, her first full year as chief executive of the world's
second-biggest soft drink maker, the company reported in a regulatory filing
Monday.
That more than doubled the $6.3 million she was paid in 2006, when she
served as chief financial officer for most of that year before taking over the
top spot on Oct. 1, 2006. Her predecessor, Steven S. Reinemund, earned a total
pay package of $17.5 million in 2006.
The bulk of Nooyi's 2007 pay was stock and options worth roughly $9.83
million on the day they were granted. She also earned $1.3 million in salary,
$3.2 million in performance-based bonuses and $404,071 in other compensation, a
category that includes executive perks like flying on the company jet.
In Nooyi's case, Purchase-based PepsiCo spent $57,928 on her personal use of
the company aircraft. She was responsible for paying the taxes on those flight
expenses. She also incurred $8,238 in expenses for what the company called
ground transportation, $17,639 for car expenses, $6,750 for 401(k) matching
contributions and $311,856 for accrued dividends.
PepsiCo Inc. owns brands such as Mountain Dew, Gatorade, Tropicana and
Quaker as well as the Frito-Lay snacks business, which sells Doritos, Cheetos
and Sun Chips. The company has bought a number of smaller companies to expand
its overseas sales and diversify its product portfolio into healthier offerings.
In Nooyi's first full year in charge, the company's stock price jumped about
21.3 percent. And last month's Fortune magazine featured Nooyi on the cover,
with the question, "What makes Pepsi great?"
The company's second-highest paid executive is PepsiCo International CEO
Mike White, who got a compensation package worth $7.1 million in 2007. Of that,
$3.08 million was stock and options. White had been Nooyi's rival for the CEO
job.
Information on Nooyi's and White's pay was disclosed in the company's proxy
materials, filed for shareholder consideration ahead of the company's May 7
annual meeting at Frito-Lay headquarters in Plano, Texas.
The proxy materials also included a proposal from retirement planner
TIAA-CREF to let shareholders have an advisory vote, or a "say on pay," on
executive compensation. PepsiCo is the latest among dozens of companies to get
such proposals.
Aflac Inc., the insurance company best known in ads for its quacking duck,
became one of the first companies to adopt such a policy last year. Verizon
Communications Inc. is another.
The votes, which let shareholders withhold their approval of companies' pay
policies, are not binding, but "no" votes could be embarrassing for a company.
The Associated Press' calculations of total compensation include salary,
bonus, perks, and the estimated value of stock options and awards granted during
the year.
The calculations don't include changes in the present value of pension
benefits and sometimes differ from the totals that companies report in the
summary compensation table of proxy statements filed with the Securities and
Exchange Commission.
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