Mondelez International (Nasdaq: MDLZ ) is fresh off its recent corporate breakup. It boasts one of the best snack-brand portfolios in the industry and massive global growth opportunities. But Mondelez has doubled down by putting all its chips on emerging nations' tables, which introduces extra risks to the company. I've created a premium report on Mondelez to help investors examine the company's future.
Following is an excerpt from the report, which highlights Mondelez's leadership. It's just a taste of one section, but we hope you find it useful.
Irene Rosenfeld is the CEO of Mondelez International. From 2006 until the October 2012 Kraft Foods Group/Mondelez International corporate breakup, Rosenfeld had been at the helm of the original Kraft Foods as CEO, a role to which she brought nearly three decades of company experience. For 27 years, she rose through the ranks at Kraft (starting at General Foods, which later merged with Kraft), holding various leadership roles in consumer research, operations, and corporate strategy. Rosenfeld left Kraft from 2004 to 2006, during which time she was CEO of Frito-Lay, a division of PepsiCo. Rosenfeld returned to Kraft as CEO in June 2006.
Since 2006, Rosenfeld has navigated the company amid precarious global macroeconomics. In her tenure as CEO, she has commanded increased investments and acquisitions in developing markets and orchestrated the recent corporate breakup. For much of her tenure as CEO, the original Kraft Foods stock outperformed the S&P 500 but underperformed its performance peer group, which includes competitors Coca-Cola, PepsiCo, Kellogg, Nestle, and Hershey.
In 2011, Rosenfeld received approximately $22 million in total compensation, representing 0.04% of the company's gross revenues that year. By comparison, this is in line with what Coca-Cola, PepsiCo, and Diageo CEOs received -- nearly 0.06%, 0.03%, and 0.02% of their companies' respective gross revenues that same year. Rosenfeld's performance metrics are aligned with shareholder's interests and tied to the company's organic net revenue growth, operating income, and free cash flow. In 2011, organic net revenues grew 6.6%. From 2010 to 2011, Rosenfeld's total annual compensation rose nearly 14%. During this time, shareholders enjoyed a 22% total return.
Rosenfeld received a great deal of backlash two years ago when Kraft acquired Cadbury, the esteemed U.K. confectionery maker, in a hostile and controversial takeover. The Cadbury deal had drawn criticism not only from the British public and politicians, whose main reason for the opposition was the loss of jobs, but also from Warren Buffett, one of Kraft's largest investors. The acquisition was critical for Kraft, as the company wanted to introduce and develop products in new, fast-growing markets such as India and Brazil, and Cadbury has an extremely strong presence in those nations. Kraft enjoyed cost savings in second-quarter 2012, attributed in part to distribution channels established by Cadbury. But Mondelez will reap future benefits -- it owns the Cadbury brand, effective as of the corporate split.
Luckily for Rosenfeld and Mondelez's balance sheet, a good portion of the debt of the original Kraft Foods was spun off to Kraft Foods Group. As such, Mondelez is in a better financial position after the spinoff. The company should generate solid cash flows, which will be used to reinvest in the business or augment shareholder returns. Mondelez will reward shareholders with a roughly 2% dividend yield.
Looking for more help?
That was just a small morsel of our new premium report on Mondelez International. If you're trying to figure out whether the company is a buy or sell, the report is an indispensable resource for investors seeking more information. Also, the report comes with updated quarterly guidance so you'll stay in the know. To get started, simply click here.