Kraft CEO's Total 2011 Compensation Up 13.5% To $21.9 Million
April 03 2012 - 10:07AM
Dow Jones News
Kraft Foods Inc. (KFT) Chairman and Chief Executive Irene
Rosenfeld received total compensation of $21.9 million in 2011, up
13.5% due to a higher performance-based bonus as organic-revenue
growth exceeded expectations last year.
Rosenfeld received a base salary of $1.5 million in 2011, up
slightly from the prior year, and her stock and option awards
increased to $9.7 million from $9.5 million, according to a
Securities and Exchange Commission report filed late Monday.
Her annual performance-based bonus was $4.2 million, nearly
doubling from the prior year, as Kraft posted 6.6% organic sales
growth in 2011, well-ahead of the 4% growth target. Kraft's
adjusted operating income and free cash flow were just below the
targeted goals, however.
Rosenfeld's 2011 compensation also includes about $6.2 million
in the change in value of her pension, up from $5.8 million in the
prior year, and about $276,000 in all other compensation.
Kraft's sales have been boosted by raising prices over the past
year in response to higher costs. But Kraft has also been trimming
expenses, and plowing some of the savings into marketing to support
its brands, which has helped keep sales volumes afloat. Kraft has
also been growing rapidly in emerging markets.
The company is in the process of splitting up. It's
faster-growing snack brands are going to be part of Mondelez
International Inc., while the slower-growing North American grocery
business is going to split off to become Kraft Foods Group Inc.
Kraft expects the split up to be complete by the end of the
year.
Mondelez, which will be headed by Rosenfeld, will have roughly
$35 billion in annual sales, housing brands like Oreo and Lu
biscuits, Trident gum and Cadbury candy. Kraft Foods Group has
tapped Tony Vernon, current president of Kraft's North America
business, as chief executive, and will have about $18 billion in
annual sales.
Kraft shares were up 0.2% premarket to $38.47, and through
Monday's close of $38.38, were up 21.4% over the past year.
-By Paul Ziobro, Dow Jones Newswires; 212-416-2194;
paul.ziobro@dowjones.com
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