Oreo cookie maker Mondelez gives CEO $10M award

AP News
Posted: Dec 21, 2012 3:29 PM
Oreo cookie maker Mondelez gives CEO $10M award

NEW YORK (AP) — The company that makes Oreo cookies is sweetening the pay for its CEO with a special stock award valued at $10 million.

Mondelez International Inc. said Friday in a regulatory filing that the award recognizes Irene Rosenfeld for "top-tier performance" and "transformational" moves, such as the recent spinoff of its Kraft Foods grocery business.

Mondelez, which also makes Cadbury chocolates, Chips Ahoy cookies and Trident gum, said the pay is also intended to give her incentive to continue delivering strong results. It includes restricted stock that will vest after three years and restricted stock based on the company's performance.

Rosenfeld, who took over as CEO in 2006, received a pay package worth $15.7 million as CEO of Kraft Foods Inc. last year, according to an Associated Press calculation.

Although its split from Kraft was successful, Mondelez has made some early missteps. Last month, the company said its net income fell 29 percent in its first quarter as an independent company. Rosenfeld said at the time the results were hurt by "short-term executional missteps." In Brazil, for example, she said the company didn't react quickly enough to a slowdown in gum purchases. In Russia, she said the company didn't cut prices for coffee and chocolate as competitors did.

Rosenfeld said at the time those issues should be "largely resolved" by the end of the year.

Shares of Mondelez, based in Deerfield, Ill., were down 37 cents at $25.70 in afternoon trading.