April 5, 2013

Growth down, rights abuses up: CEO 2012 compensation leaps 40%

New documents filed with the US regulatory authorities show a substantial increase in Mondelēz CEO Irene Rosenfeld's total compensation for 2012 - a year marked by significant human rights violations "executional missteps" (the company's phrase) and falling revenue for the snacks maker.

Boosted by the 2012 end of year "special equity award", and depending on how one evaluates the various compensation components, Rosenfeld's package totaled USD 28.8 million for a 31% increase over 2011 (the Wall Street Journal), or 22 million for a 40% increase (the formula used by Associated Press and others).

Other top executives at Mondelēz received significant compensation increases: CFO David Brearton earned $5.9 million in 2012, up from $3.6 million in 2011 - an increase of 63%.

On March 13, Mondelēz announced a 3-year USD 1.2 billion share buyback program exclusively "to offset dilution from the company's equity compensation plans", i.e to support an equivalent sum in stock bonuses.

Mondelēz enters 2013 with conflicts arising from fundamental rights violations in Egypt and Tunisia unresolved, new gross violations in Pakistan and an Indian government investigation into a USD 46 million tax fraud to add to the US SEC's ongoing investigation into alleged bribery in India.

The International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations (IUF)