Home » What the boss makes
What the boss makes
They’re not the glamour boys of big business and most of them have surprisingly modest (by comparison) paychecks. Nevertheless, the CEOs of the largest publicly held food companies probably don’t have to clip their own coupons to pay for groceries.
Forbes magazine published its annual listing of CEO pay in the May 8 issue. Pay for the big food guys ranged from the $18.61 million gross of General Mills’ Stephen Sanger (that’s 18,610 Big G’s) to the modest $1 million flat for Gary Rodkin, who just took over at ConAgra. (Rodkin’s pay is misleading. He just joined ConAgra last October and apparently has a minimum annual bonus of $2 million, which hasn’t been paid yet.)
Sanger’s big paycheck, like that of most of the CEOs, includes a lot more than just salary. The General Mills chairman/CEO (not everyone on the list also was a board chairman) has a stated salary of $2.47 million, an 8 percent increase from the previous year, plus $348,000 in other income and nearly $16 million in stock gains, according to the magazine. Forbes figures into compensation stock grants only as they vest and realized gains from exercised stock options.
Sanger’s total of $18.6 million ranked him 69th on the Forbes list of 500 executives from all industries. The magazine said he earned $35 million over the past five years and holds $43 million worth of stock.
“We don’t begrudge big pay packages — provided the chief is delivering returns to shareholders,” the magazine wrote.
And some are, but apparently not the foodies. Leading the list of top performers is John Buscksbaum of General Growth Properties, a real estate investment trust. Paid an average of $624,000 over the past six years, he’s delivered a 37 percent annual return to shareholders. “Give this guy a raise,” the magazine says.
None of the 10 CEOs on the top performers list was from our sector. Fortunately, neither was any of the 10 worst.
However, Joseph Luter III of Smithfield Foods made Forbes ’ “20/20” club, a list of 10 executives who produced at least 20 percent returns annually over 20 years. So seniority and the feeling that you own the company may help performance. The 66-year-old Luter is chairman and CEO and the third Joseph Luter to head the company (his grandfather founded Smithfield in 1936).
“That [annualized] 20 percent is no small feat. … These companies are worth, on average, 700 times what they were when the company listed or the current chief executive took office,” Forbes wrote about the 20/20 club. Luter, who’s been at the helm 31 years, produced a 29 percent annualized return, second highest on the list (Lawrence Ellison of Oracle delivered 31 percent). That puts Luter two steps above one Warren Buffett of Berkshire Hathaway.
|Name||Company||Pay ($ millions)||Rank|
|Stephen Sanger||General Mills||18.61||69|
|Alan Lafley||Procter & Gamble||16.87||79|
|William Wrigley Jr.||Wm. Wrigley Jr. Co.||13.00||109|
|John Cahill||Pepsi Bottling Group||12.23||119|
|Joel Johnson||Hormel Foods||12.06||122|
|Joseph Luter III||Smithfield Foods||10.80||132|
|Norman Wesley||Fortune Brands||9.60||150|
|E. Neville Isdell||Coca-Cola||6.49||220|
|John Tyson||Tyson Foods||5.54||249|
|Douglas Conant||Campbell Soup||5.32||259|
|Gregg Engles||Dean Foods||4.75 1||275|
|William Johnson||H.J. Heinz||3.51||325|
|G. Allen Andreas||Archer Daniels Midland||3.28||347|
|W. Leo Kiely III||Molson Coors Brewing||3.17 1||356|
|Richard Sands||Constellation Brands||2.30||392|
|Lowry Kline||Coca-Cola Enterprises||1.92 2||422|
|Patrick Stokes||Anheuser-Busch Cos.||1.89||425|
|Paul Varga||Brown-Forman||1.79 2||430|
|Brenda Barnes||Sara Lee||1.43 2||449|
|Gary Rodkin||ConAgra Foods||1.004||78|
2. New chief executive, pay may be for a prior position
Source: Forbes, "Executive Pay," May 8
Happy Family Bought by Groupe Danone
Dannon parent acquires 92 percent of seven-year-old toddler food company.
Anuga 2013: A Taste of Global Innovations Set to Take Place October 5-9
The huge global food show will be October 5-9 in Cologne, Germany.
Vermont Passes Genetic Labeling Bill
The Vermont House of Representatives approved H.112 on May 10. The bill will go to the senate next in fall 2013. If passed, the earliest the act could become law is January 2014.
GMO Labeling Effort Reaches Washington
Senate and House bills would require the FDA to develop regulations for the labeling of food containing bioengineered ingredients.
Burger King CEO To Take Over at Heinz
Bernardo Hees of 3G Capital is new CEO of Pittsburgh acquisition.
The New Hostess Company Resumes Operations
The Metropolous-Apollo-controlled company plans to reopen four plants and hire workers, but not union labor.
- 04/19/2013 Cheesemaker, Restaurant Chain Hold Mac and Cheese Cookoff
- 04/19/2013 Restaurant Chain That Also Supplies School Lunches Goes Trans Fat-Free
$10 Billion Offer for D.E Master Blenders 1753
Former part of Sara Lee eyed by European fund Joh. A. Benckiser.
Pinnacle Foods Goes Public
Blackstone Group sells 32 percent of Pinnacle Foods into stock market.
- All news »
Access Food Processing and Wellness Foods magazines on-line and receive an e-mail each month when your new issue is ready. Subscribe Now »
Biweekly updates delivering feature articles, top industry news, company news, product announcements, technical issues and more. Subscribe Now »