March 18--Kraft Foods Group gave former CEO Tony Vernon a 10 percent salary increase in 2014, but he still took home about $1 million less than a year earlier as the food-maker posted weak results.
Kraft, the maker of Kraft cheese, Oscar Mayer meat and Planters nuts, made it clear in a filing with U.S. regulators Wednesday that it had higher hopes for 2014 than what played out as the year progressed.
"We did not deliver to our potential," the company said.
The company highlighted issues such as its decision to raise prices to offset higher commodity costs and other factors that "are not expected to repeat."
Vernon, whose departure was announced in December, saw his annual salary increase to $1.1 million from $1 million in April. It was his first salary increase since he became CEO in 2012, Kraft said. Other executives, including former CFO Teri List-Stoll and former Oscar Mayer President Sam Rovit, saw their salaries rise about 2 percent in April.
Vernon's total compensation, including stock awards, options and other compensation, declined to less than $8.2 million in 2014 from nearly $9.2 million in 2013, the filing showed.
Rovit's compensation rose to nearly $4.1 million from less than $2.2 million a year earlier. Rovit left the company in March.
Total compensation for Chairman and CEO John Cahill was nearly $4.1 million in 2014, down from nearly $6 million a year earlier. Part of the decline was attributable to Cahill spending most of the year as non-executive chairman. Acting as nonexecutive chairman carried a lower annual retainer of $360,000 a year than the $750,000 Cahill earned in 2013 when he was executive chairman. Cahill added the role of CEO in late December.
Kraft also said its annual meeting would be held in Glenview on May 5.
Northfield-based Kraft suggested to shareholders that they vote against four shareholder proposals. The proposals seek various disclosures on egg-laying chickens, deforestation, packaging and sustainability efforts.
The first shareholder proposal asks Kraft to disclose any financial or operational risks it faces from procuring eggs from chickens that are confined in cages.
Kraft said it has procured 1 million cage-free eggs annually since 2011 and has doubled that purchasing commitment for 2015. The company, which does not raise its own hens, said it requires its suppliers to treat their animals according to industry guidelines. Kraft said it is "actively exploring alternative hen housing options with suppliers."
The Humane Society of the United States said it submitted the proposal related to egg sourcing. In a letter to Kraft shareholders, it gives examples of other food companies including Heinz and Nestle that have announced plans to switch to using all cage-free eggs.
jwohl@tribpub.com
