On Friday, Mondelez International (NASDAQ: MDLZ ) , the snack foods division recently spun off from Kraft Foods (NASDAQ: KRFT ) , reported in an SEC filing that its Board of Directors has granted Irene Rosenfeld, CEO and chairwoman of the board, a "special equity award" valued at $10 million.
The company explained the bonus as being both a "reward to Ms. Rosenfeld for delivering top-tier performance during her tenure as CEO" and also a way to "further incentivize Ms. Rosenfeld to continue to deliver top-tier performance returns in the future."
Mondelez noted that 20% of the award will be in the form of a restricted stock grant, with the remaining 80% being "performance-contingent restricted stock units" that are contingent on Mondelez's stock price rising to certain tiered levels, and remaining at these levels for at least 10 consecutive trading days. The company further noted that it is using the stock price on the date of the grant, $25.935 to determine the actual number of shares involved in the award -- approximately 385,579.
All of the shares involved in the award have a vesting period of at least three years, with the initial 20% vesting automatically, and the remaining 80% vesting after both three years have elapsed, and after the stock has appreciated to the designated levels.