A sweet $200 million deal for Heinz CEO Johnson?
The chief executive of the ketchup giant could get a handsome exit award, which would be among the largest CEO payouts ever.
According to The Wall Street Journal, Johnson is eligible for an exit package worth more than $200 million from the Pittsburgh-based ketchup giant once its $28 billion sale to Warren Buffett's Berkshire Hathaway (BRK.A) and 3G Capital, a Brazilian private equity firm, closes. That includes $99.7 million in Heinz shares, a $56 million "golden parachute" and $57 million in pension and deferred compensation. A Heinz spokesman tells MSN Money that no decision has been made about the future of Johnson or any other members of Heinz's management team.
Odds are, though, that Johnson will pursue other career opportunities. Acquirers of companies often prefer to install their own CEOs once deals are completed. 3G named a new CEO of Burger King (BKW) after it acquired the fast-food giant in 2010. Buffett, though, tries to keep leadership teams of companies that he acquires and prides himself on not being a micromanager. Still, some CEOs may not be interested in having a boss, even someone as well regarded as the Oracle of Omaha.
Johnson's payout would be among the 10 largest ever given a U.S. CEO and, according to Heinz, is well-deserved. The CEO has delivered total shareholder returns of 177% since 2006, a company spokesperson told the Journal. The $72.50-per-share deal is a 20% premium above the stock price on the day before it was announced.
Heinz certainly wasn't forced to sell itself. It has a commanding 60% share of the U.S. ketchup market, according to CNBC. That's remarkable for any product, let alone one that has been around since 1876. Heinz provides ketchup to both Burger King and its rival McDonald's (MCD). It also has a strong position in emerging markets such as Latin America and China. Indeed, Heinz also has the top one or two products in 50 countries.
--Jonathan Berr is long McDonald's. Follow him on Twitter @jdberr.
Heinz ketchup is really the best. Good for him. And for all those haters, why didn't you work your way up to the head of a corporate giant? Don't be mad at him. That's what the job pays, he did the job - so he gets the money. I am sure he had a strategy to get to the top and it paid off. There's nothing wrong with being rich. He did a great job and made a lot of money for a lot of people. Running a company is hard work and a company that makes that much money should pay the top man for what he's done.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
A basic income policy can actually ensure a decent standard of living for everyone.
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.