The value of the compensation granted to H.J. Heinz Co. Chief Executive Officer William R. Johnson fell 5.3 percent to $13.9 million in fiscal 2009, when the ketchup and sauce maker's profit rose about 9 percent, according to an Associated Press calculation of preliminary pay figures disclosed in a regulatory filing.
The slight drop came after Johnson's compensation nearly doubled from fiscal 2007 to 2008, when he earned $14.8 million. Johnson is chairman and president of Heinz, as well as CEO.
The Pittsburgh-based company said in earlier regulatory filings that it adjusted elements of his compensation because they were inconsistent with plans for his peers at similar companies. Those elements remained in place in fiscal 2009, which ended in April.
The 60-year-old Johnson got a 9 percent boost in his salary to $1.2 million, from about $1.1 million last year, according to Friday's filing with the Securities and Exchange Commission. He received $7.3 million in compensation tied to annual incentives and long-term performance-based rewards, 18.7 percent less than the $9 million he earned in that category last year.
Just like last year, he received no bonus.
Johnson's pay package included stock and options in fiscal 2009 that were valued by the company at nearly $4.3 million on the day it granted them, at $51.25 a share. But those shares have lost value as the company's stock _ along with the overall stock market _ has fallen since they were granted last summer. Shares were up 16 cents to $36.19 in midday trading Friday.
Johnson received $1.1 million in other compensation, about 23 percent more than last year's $924,306. The bulk of fiscal 2009's number includes $909,632 for an employee retirement and savings plan. The company said the rest of the compensation in this category was tied to financial counseling, a car allowance, parking, club deals, health care and other benefits, though it did not specify amounts.
The Associated Press compensation formula aims to isolate the value a company's board placed on its top executive's total compensation package during the last fiscal year. In general, it includes salary, bonus, performance-related bonuses, 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 they sometimes differ from the totals that companies list in the summary compensation table of proxy statements filed with the SEC, which reflect the size of the accounting charge taken for the executive's compensation.
Last month the company said its net income rose 9 percent in 2009 to $923.1 million, or $2.90 per share, from $844.9 million, or $2.63 per share, the previous year.
Sales climbed 1 percent to $10.15 billion in fiscal 2009 from $10.07 billion.
Food makers like Heinz, known for frozen foods like Weight Watchers Smart Ones, as well as sauces, have benefited as consumers eat out less during the recession. But as consumers seek to save more money they are turning to in-store brands, which cost less. Heinz said last month it plans to boost marketing and limit price discounting in fiscal 2010 to go after consumers who have been trading down.
Johnson said consumers are returning a bit from their trade-downs, and Heinz will focus on new creations _ including new packaging _ and marketing to make sure its brands keep selling.
Terms & Conditions
RSS Headlines
Fool UK