Kraft boss paid £14M after Cadbury savings
Rosenfeld received a base salary of nearly £1M in 2011, up slightly from the previous year, with her stock and option value awards also rising to £6.1M from £6M, the firm revealed.
Her annual bonus nearly doubled from the previous year to £2.6M and she also saw an increase in her pension value, which reached £3.9M.
A key reason for the increase came after “the retention of Cadbury leaders and significant changes in the senior executive team improved the talent pipeline. Key sales leadership roles were also strengthened and diversity improved”, a Kraft statement revealed.
Integration savings
Rosenfeld was also rewarded for overseeing the delivery of the firm’s integration savings plan at Cadbury, which was expected to exceed the original target of £471.6M ($750M) for this year.
A Kraft spokesman told FoodManufacture.co.uk:“In 2011, we delivered stellar financial performance, including top-tier revenue growth and earnings results. In addition, our compensation is based on performance and is market-competitive.
“For example, about 85% of our ceo’s compensation is at risk, incentive-based pay, with 70% based on long-term performance.”
The news has been met with fury by union bosses, who slammed Rosenfeld for profiting at the expense of hundreds of workers at Cadbury’s Bournville site in Birmingham.
Higher pay review
Jennie Formby, national officer at the union Unite, told FoodManufacture.co.uk: “I think this is yet another call for a higher pay review. There needs to be complete transparency. Our members are disgusted that such vast amounts of money are being paid out when they are being asked to pay with their jobs.”
FoodManufacture.co.uk reported in December last year that the firm would be cutting 200 jobs at Bournville, while investing £50M in chocolate biscuit manufacturing at the site.
This followed the firm’s decision to cut 400 jobs at Cadbury’s Somerdale factory in Bristol in February last year.
Formby said that it was unclear as to when the axe would fall on the Bournville jobs and further hit out at Kraft for its strategy since the controversial takeover in March 2010.
She also reignited talk of a Cadbury law, designed to protect UK companies from predatory takeovers from overseas.
“Everything that Kraft has done has emphasised the need for a Cadbury Law,” she added.
“Kraft is not looking at the bigger picture and is only interested in cutting costs from the business wherever it can All the while, bigger and better bonuses are being paid out and workers and communities are paying for it.”
