Yesterday the Financial Times reported that Irene Rosenfeld, chairman and chief executive of Mondelez, was handed a $10M special bonus last year for ‘spinning off’ Kraft Foods elevating her overall pay up by a massive 31% to $28.8M in the latest exampl …
Yesterday the Financial Times reported that Irene Rosenfeld, chairman and chief executive of Mondelez, was handed a $10M special bonus last year for ‘spinning off’ Kraft Foods elevating her overall pay up by a massive 31% to $28.8M in the latest example of corporate gluttony. Irene Rosenfeld faced strong criticism from trade unions in the UK for the hostile take-over of Cadbury’s by Kraft in 2010.
At the time Cadbury’s trade unions warned that up to 30,000 jobs would be put at risk by the deal as Kraft would be weighed down by some £22bn in debt. Kraft has a record of aggressive cost-cutting, and the trade union Unite said that between 2004 and 2008 it shed 19,000 jobs and closed 35 sites to help reduce its debt.
See the below statement from the IUF Uniting Food, Farm and Hotel Workers World-Wide.
New documents filed with the US regulatory authorities show a substantial increase in Mondelez CEO Irene Rosenfeld’s total compensation for 2012 – a year marked by significant human rights violations “executional missteps” (the company’s phrase) and falling revenue for the snacks maker.
Boosted by the 2012 end of year “special equity award“, and depending on how one evaluates the various compensation components, Rosenfeld’s package totaled USD 28.8 million for a 31% increase over 2011 (the Wall Street Journal), or 22 million for a 40% increase (the formula used by Associated Press and others).
Other top bosses at Mondelez received significant compensation increases: CFO David Brearton earned $5.9 million in 2012, up from $3.6 million in 2011 – an increase of 63%.
On March 13, Mondelez announced a 3-year USD 1.2 billion share buyback program exclusively “to offset dilution from the company’s equity compensation plans”, i.e to support an equivalent sum in stock bonuses.
Mondelez enters 2013 with conflicts arising from fundamental rights violations in Egypt and Tunisia unresolved, new gross violations in Pakistan and an Indian government investigation into a USD 46 million tax fraud to add to the US SEC’s ongoing investigation into alleged bribery in India.
For more information visit the IUF – Uniting Food, Farm and Hotel Workers World-Wide website here.
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