H.J. Heinz Co. CEO William R. Johnson's compensation nearly doubled to a total of $14.8 million in fiscal 2008, when the food maker introduced new benefits and profits climbed more than 7 percent.
Johnson, also the company's chairman and president, earned $1.1 million in salary and nearly $9 million in compensation tied to annual incentives and long-term performance-based rewards, according to a regulatory filing Friday.
In the previous fiscal year, Johnson received overall compensation valued by the company at $7.9 million, including $3.2 million in compensation linked to incentives.
In a filing with the Securities and Exchange Commission, Heinz said its compensation committee had adjusted elements of Johnson's compensation because they were inconsistent with those offered to CEOs at peer companies.
Among the changes was a salary increase of $100,000, the first raise since 2001, when the CEO's salary was set at $1.1 million.
Johnson's pay package included stock and options in fiscal 2008 that were valued by the company at $3.7 million on the day it granted them.
Johnson received $924,306 in other compensation that included $686,629 for an employee retirement and savings plan, $112,139 for life insurance and $50,000 for personal use of Heinz's corporate aircraft.
The Pittsburgh-based company said it had imposed a limit of $50,000 per fiscal year for Johnson's personal use of corporate aircraft and later agreed to allow Johnson to reimburse the company for the expense.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals that companies report in the summary compensation table of proxy statements filed with the SEC.
Last month, Heinz said earnings for fiscal 2008 rose by about 7.5 percent, to $844.9 million from $785.8 million a year earlier. Annual sales rose by 12 percent, to $10.1 billion from $9 billion in the previous year, and prices were up 3.3 percent. A weak dollar also boosted results by 5.1 percent in foreign currency exchange.
During the year, the maker of ketchup, Weight Watchers products and Ore-Ida potatoes introduced more than 200 new products, many of which centered on health by offering lower salt, sugar and fat content.
Growth was strongest in Heinz brands, Weight Watchers products and sales in emerging markets. The company stepped up marketing by 15 percent and research and development by 17 percent.
Heinz also unveiled a new two-year plan focusing on health and wellness products, selling to emerging markets and finding ways to cut costs and improve efficiency. It said it planned to exit five to six plants over the next two years to save $400 million.
Shares of Heinz gained $1.09, or 2.2 percent, to close at $50.63 in trading Friday.
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