Compensation package for PepsiCo CEO dips

AP News
Posted: Mar 07, 2011 7:26 PM
Compensation package for PepsiCo CEO dips

PepsiCo Inc. CEO Indra Nooyi received compensation valued at $14 million in 2010, down slightly from $14.2 million in 2009, according to an Associated Press analysis of a regulatory filing the snack and beverage maker made Monday.

Nooyi's salary and performance-based cash bonus and the value of her stock awards didn't change. In both years, she received $1.3 million in salary, a $3 million cash bonus and stock awards valued at $6 million.

But the value of the stock options she received fell about $169,000, or 5 percent, to about $3.5 million in fiscal 2010, which ended Dec. 25. The value of her other perks, mainly personal use of the company aircraft, rose 12 percent to $224,302.

Nooyi's total compensation for 2010 was about 1 percent lower than for fiscal 2009.

Nooyi, 55, took over as CEO of the company, based in Purchase N.Y., in 2006.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. 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, making the AP total different in most cases from the total reported by companies to the Securities and Exchange Commission.

PepsiCo, which owns brands like Gatorade, Tropicana and Quaker, has seen its business grow recently as it put a heavier emphasis on emerging markets and acquired two of its bottlers. The company said last month that its full-year net income rose 6 percent to $6.32 billion in 2010, and its revenue rose 34 percent to $57.8 billion.

PepsiCo shares rose 7 cents to close at $63.47 Monday.