ConAgra CEO gets 41 percent pay cut
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ST. LOUIS—The chief executive of ConAgra Foods Inc. got a 41 percent pay cut in 2008, receiving compensation the packaged food company valued at $7.9 million for a year the stock price sank roughly 8 percent.
CEO Gary Rodkin received a $1 million salary, $1.8 million in incentive compensation and $4.9 million in stock and options. His $297,526 in perks and extra benefits included $98,215 for personal flights on company aircraft, according to the company's proxy, filed Friday with the Securities and Exchange Commission.
Before joining ConAgra in 2005, Rodkin, 56, was chairman and CEO of PepsiCo Beverages and Foods North America from 2003 to 2005.
ConAgra's board decided to cut Rodkin's pay because of uneven performance in the company's consumer products and merchandising units, said spokeswoman Teresa Paulsen.
"It's a reflection of our pay for performance philosophy," Paulsen said. She said the company did what it set out to do overall last fiscal year, but the way it got those results was a bit mixed.
Rising commodity costs ate into ConAgra's packaged-food profits, while the company suffered a major recall of Banquet pot pies during October, Paulsen said. The company was still recovering from a recall of Peter Pan peanut butter during fiscal year 2007.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The total may vary from totals that companies report.
ConAgra earned $931 million, or $1.90 per share, during its 2008 fiscal year, which ended in May, which was up 22 percent from 2007.
The company's 2008 profits were padded by contributions from its commodity trading unit, as prices for grains like wheat, corn and soybeans hit record highs. ConAgra sold the trading unit in June for $2.2 billion in cash and $550 million in debt securities.
Selling the trading unit is part of ConAgra's long-term strategy to focus on the company's core packaged food products, Paulsen said. ConAgra sells food brands such as Healthy Choice, Chef Boyardee and Egg Beaters.
During the past decade, ConAgra has changed from a decentralized conglomerate based in agricultural commodities into a retailer of packaged food with centralized research, sales and administration.
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