Kraft Execs Raked in Big Bonuses
Saturday March 6, 1:26 pm ET
CHICAGO (Reuters) - Bonuses totaling more than $10 million were paid out to
five Kraft Foods Inc. (NYSE:KFT - News) executives at the end of 2003, even as
the giant food maker made plans to lay off thousands of workers.
In its annual proxy statement released on Friday, Kraft said the biggest
payout, a $3.7-million bonus, was made to Chief Executive Roger Deromedi.
Former co-CEO Betsy Holden got $3.5 million, sweetening her demotion to global
marketing chief in December.
Other payments were $1.3 million for North American President David Johnson,
$900,000 for international boss Hugh Roberts and $1.2 million for global supply
chain Executive Vice President Franz-Josef Vogelsang.
The maker of Velveeta cheese, Ritz crackers and Maxwell House coffee has
struggled to meet Wall Street expectations lately, hurt by a lack of attractive
new products and by cheaper competition in some sectors.
In January, Chicago-based Kraft said it would cut about 6,000 jobs and close 20
plants as it tried to restore growth.
An experiment in joint leadership, with Deromedi in charge of Kraft's
international operations and Holden running the North American business, ended
on Dec. 16.
The bonuses paid by Northbrook, Illinois-based Kraft were made under a
three-year incentive plan covering 2001 to 2003.
Kraft said the plan aimed to focus executives on the achievement of long-term
financial and strategic goals that have a positive impact on stockholder
returns.
Kraft shares closed at $34.12 on the New York Stock Exchange (News - Websites)
on Friday, up 1.8 percent but far below its 2002 high near $40.00. Kraft shares
fell 17 percent in 2003, even as the Standard & Poor's index of large-cap food
stocks rose more than 5 percent.
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