Mondelez CEO Rosenfeld's pay increased 50% to $21 million

Mondelez International CEO Irene Rosenfeld's total compensation in 2014 rose 50.3 percent to $21 million, with the vast majority of the increase, $5.1 million, tied to an increase in the value of her pension plan and other retirement benefits. 

Rosenfeld, 61, also received a boost in her annual cash incentive, which more than doubled in 2014 to $3.6 million. Her base salary of $1.6 million rose slightly, up from $1.59 million in 2013, according to documents filed today with the federal Securities and Exchange Commission.

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Mondelez putting coffee biz into new company

Mondelez International and D.E Master Blenders 1753 B.V. announced plans this morning to combine their coffee businesses into a Netherlands-based pure-play coffee company.

The new company will be called Jacobs Douwe Egberts, the companies said in a statement. It will combine brands such as Gevalia and Tassimo from Mondelez International and Senseo from from D.E Master Blenders 1753.

When the transactions related to the deal are completed Deerfield-based Mondelez will get about $5 billion in cash and will hold and a 49 percent stake in the new company.

"We're delighted with this transaction and the substantial value we expect to create for our shareholders," Mondelez Chairman and CEO Irene Rosenfeld said in the statement. “By retaining a significant stake in the combined company, we'll continue to benefit from the future growth of the coffee category and share in the synergies and tremendous upside of this leading, one-of-a-kind coffee company."

Mondelez' wholly owned coffee business did about $3.9 billion in revenue last year while the whole company had $35 billion in revenue.

Mondelez Will Spend $110 Million on New Snack Factory in Russia

Mondelez International Inc. (MDLZ), the U.S. company that makes everything from Oreo cookies to Trident gum, plans to spend $110 million on a new factory in Russia, navigating an increasingly tense geopolitical climate.

The company’s Russian unit will build the plant in the Novosibirsk region, adding enough capacity to produce 50,000 tons of snacks annually, spokesman Michael Mitchell said today in a statement. The factory, which will be Mondelez’s most advanced facility in Russia, is expected to create 180 jobs.

Mondelez, formerly Kraft Foods Group Inc.’s snack business, is pushing ahead with expansion in the country even as political tensions create headwinds for American companies operating in the region. The U.S. and Europe are threatening to step up economic sanctions against Russia following President Vladimir Putin’s move to annex Crimea from Ukraine last month.

Mondelez’s move is part of a previously announced effort to improve its supply chain. The company is trying to save $1.5 billion in net productivity and increase cash flow by $1 billion over the next three years, Mitchell said. The new plant will produce Jubilee, TUC and Barni biscuits, as well as Alpen Gold, Milka and Vozdushnyy chocolate.

The Deerfield, Illinois-based company is adopting “a number of initiatives around the world to capitalize on growing demand in emerging markets, while also aggressively reducing costs and improving productivity,” Mitchell said in the statement.

Last week, McDonald’s Corp. said it was closing its three locations in Crimea, citing the loss of “necessary financial and banking services.”

“It is important to note that this is strictly a business decision which has nothing to do with politics,” the Oak Brook, Illinois-based restaurant chain said in a statement. “We are taking numerous steps to support our employees during this time. We hope to reopen our restaurants soon so we can welcome back our loyal customers.”

Executive pay : Mondelez cuts CEO Rosenfeld's pay by half

Irene Rosenfeld, chairman and CEO of Mondelez International Inc., took a big pay cut last year, with her total compensation falling 51 percent to $14 million.

The decline came from a difficult year that she called "below what we and our shareholders originally expected" and the lack of a $10 million bonus she received in 2012 for creating Deerfield, Illinois-based Mondelez. The snacks company was spun off from Kraft Foods Inc. in 2012. Mondelez took with it Kraft's Oreo and Tang brands and a focus on emerging markets while the renamed Kraft Foods Group Inc. retained its Macaroni and Cheese, among others.

Mondelez CEO gets stock grant worth $10 million

Mondelez International Inc. gave Chairman and CEO Irene Rosenfeld a special stock award this week valued at $10 million in part for “delivering top-tier performance” as chief executive.

Deerfield, Ill-based Mondelez, the global snack business of the former Kraft Foods Inc., designed the award “to both recognize Ms. Rosenfeld's past accomplishments and further incentivize” her, the company said in a filing today with the Securities and Exchange Commission.

Most of the grant — 80 percent — is made up of restricted stock units contingent on the company reaching certain stock price thresholds but will not vest for three years, according to the filing. The remainder of the award is stock that fully vests after three years.

The number of shares and units in the award was based on a stock price of $25.94 a share, which Mondelez said was the average of the high and low price Wednesday, the day of the grant. The stock closed Thursday at $26.07.

Ms. Rosenfeld's total compensation last year was $21.9 million, according to a proxy statement.

Kraft, Mondelez begin trading as 2 companies

NEW YORK (AP) — Kraft Foods Group and Mondelez International are now trading as two separate public companies.

Kraft Foods Inc. decided to spin off its global snack business in March. That company, called Mondelez International Inc., will be home to global brands including Oreo, Cadbury and Nabisco and trade under the ticker "MDLZ."

Mondelez's stock gained 2 cents to $27.84 in Tuesday morning trading.

The North American grocery business will continue to carry the name Kraft and include Velveeta, Miracle Whip and Oscar Mayer. Its ticker will change to "KRFT" from "KFT"

Shares of Kraft Foods Group, based in Northfield, Ill., added 61 cents to $44.71.

Scott Mushkin of Jefferies started coverage of Kraft Foods Group Inc. with a "Buy" rating and $50 price target. The analyst said while the company only runs in the slower growing North American market, it is a shareholder-friendly operator with strong brands.

"Management's strong track record in the consumer products space gives us confidence that it can execute on the ambitious plans for Kraft," Mushkin wrote in a client note.

Citi Investment Research's David Driscoll gave Kraft Foods Group a "Neutral" rating and $48 price target. The analyst feels that Kraft can increase its sales by 2 percent to 3 percent and boost earnings per share by 7 percent to 9 percent over the long term by improving margins and reinvesting savings into new products and marketing.