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Kraft Foods Inc. (KFT) Chairman and Chief Executive Irene Rosenfeld received total compensation of $21.9 million in 2011, up 13.5% due to a higher performance-based bonus as organic-revenue growth exceeded expectations last year.
Rosenfeld received a base salary of $1.5 million in 2011, up slightly from the prior year, and her stock and option awards increased to $9.7 million from $9.5 million, according to a Securities and Exchange Commission report filed late Monday.
Her annual performance-based bonus was $4.2 million, nearly doubling from the prior year, as Kraft posted 6.6% organic sales growth in 2011, well-ahead of the 4% growth target. Kraft's adjusted operating income and free cash flow were just below the targeted goals, however.
Rosenfeld's 2011 compensation also includes about $6.2 million in the change in value of her pension, up from $5.8 million in the prior year, and about $276,000 in all other compensation.
Kraft's sales have been boosted by raising prices over the past year in response to higher costs. But Kraft has also been trimming expenses, and plowing some of the savings into marketing to support its brands, which has helped keep sales volumes afloat. Kraft has also been growing rapidly in emerging markets.
The company is in the process of splitting up. It's faster-growing snack brands are going to be part of Mondelez International Inc., while the slower-growing North American grocery business is going to split off to become Kraft Foods Group Inc. Kraft expects the split up to be complete by the end of the year.
Mondelez, which will be headed by Rosenfeld, will have roughly $35 billion in annual sales, housing brands like Oreo and Lu biscuits, Trident gum and Cadbury candy. Kraft Foods Group has tapped Tony Vernon, current president of Kraft's North America business, as chief executive, and will have about $18 billion in annual sales.
Kraft shares were up 0.2% premarket to $38.47, and through Monday's close of $38.38, were up 21.4% over the past year.
-By Paul Ziobro, Dow Jones Newswires; 212-416-2194; firstname.lastname@example.org