Why Heinz Cut Its CEO Pay To One-Tenth
Bloomberg reported Monday that the ketchup-maker H.J. Heinz Co. (NYSE:HNZ) has paid its new CEO, Bernando Hees, $9.2 million in his first year as chief executive at the company. Heinz was acquired last February by 3G Capital and Warren Buffet’s Berkshire Hathaway Inc. (NYSE:BRK.A) for a whopping $23 billion in one of the food industry’s biggest deals ever.
The CEO joined the company in June from Burger King Worldwide Inc. (NYSE:BKW), which is owned by Jorge Paulo Lemann’s 3G Capital. Hees replaces William Johnson, who has served as chief executive at Heinz since 1988; Johnson received $110.5 million in the eight months, which preceded his leave.
Johnson received a $48.8 million payment tied to equity awards that were “outstanding when the deal was completed.” Last year, Heinz said that Johnson could receive “Golden Parachute Compensation,” which included $56 million in cash, equity, bonuses, and other benefits.
Hees’ package includes an incentive payment of $1.2 million, $7.3 million in option awards as well as a $561,538 salary, Bloomberg reports.