Saturday, March 9, 2013
Heinz CEO To Get $56 Million Golden Parachute If Fired
Manufacturers of a wide array of condiments including the world famous ketchup Heinz was acquired by Warren Buffet’s Bershire Hathaway and 3G Capital for $23.3 billion last month. 3G Capital is notorious for making major budget cuts, and so William Johnson, Chairman, President and CEO of Heinz may be one of the cuts.
Oh, to be wise like Johnson! He has a line of financial plans that entitle him to a whopping total of $212.7 million, should he be fired. In addition to his golden parachute worth $56 million, Johnson would also walk away from the company with vested stock and deferred compensation benefits.
At a press conference, Johnson praised the acquisition as an opportunity for Heinz to grow in the global arena.
Warren Buffet’s Bershire Hathaway and 3G Capital’s $23.3 billion acquisition of Heinz is now American food industry’s biggest acquisition ever.
Let’s break Johnson’s millions down a little; if he chooses to leave, Johnson’s deal provides him with an automatic $40 million. If he is fired, an additional $16 million will be added. And with his vested stock at $99.7 million and his $57 million in defferred compensation benefits, Johnson’s payout remains quite hefty, and the 64- year-old’s 15-year stint at the head of the company is obviously rewarding.
Michael Mullen, the spokesman for Heinz, says that the financial agreements in place are to acknowledge Johnson’s achievements in “creating billions of dollars in shareholder value.” with the company.