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2000 CFO Pay: Triarc’s Barnes Enjoyed a Huge Payday

It's nice to be the CFO for Nelson Peltz and Peter May.
Michelle GabrielleMay 22, 2001

Leave it to Triarc’s CEO Nelson Peltz and President and COO Peter May.

This duo sure knows how to make money from mundane businesses no one else wants.

In the 1980s, they shared nearly $800 million in profits when they sold Triangle Industries, a collection of can-making companies, to France’s Pechiney for $1.26 billion.

Then, in 1993, Peltz and May bought a controlling stake in Triarc’s predecessor company from infamous financier Victor Posner. The company included a rag tag collection of second-rate consumer brands, like Arby’s and RC Cola.

Their secret is no secret—They buy low and sell high.

The most recent case in point: The Snapple brand of iced-teas and fruit drinks.

In late 2000, Peltz and May enjoyed another big payday when they sold Snapple Beverage to Cadbury Schweppes for $1.45 billion, less than three years after they shelled out just $300 million to buy Snapple from Quaker Oats—which purchased it from a group led by buyout firm Thomas H. Lee for a reported $1.7 billion.

As a result, last year Nelson Peltz exercised $21.3 million in a special class of Snapple Beverage Group options, pushing his total compensation for 2000 to more than $27 million.

Peter W. May exercised $10.55 million in SBG options. So, May’s total compensation for 2000 was $13.1 million.

However, Peltz and May weren’t the only ones to rack up big gains from Snapple.

Playing a key role behind the scenes was EVP and CFO John L. Barnes, Jr. His reward: Nearly $10 million in total compensation.

Barnes realized gains of $5,406,974 from exercising SBG options. He also exercised $2,543,950 in Triarc options.

In addition, Barnes received $448,526 in salary, and more than $1 million in special bonuses paid in connection with the completion of certain transactions and payments made pursuant to the company’s 1999 executive bonus plan.

His total compensation for 2000 worked out to $9,433,650.

In 1999, Barnes took home a little more than$1.1 million in total compensation. He received $300,000 in salary, an $800,000 bonus, and $8,800 toward his 401(k) plan.

Barnes, 53, joined Triarc in April 1996 following a 17-year career in financial and operations positions with Graniteville Co., a textile manufacturer and former Triarc subsidiary.

Upon the sale of Graniteville in September 1996, Barnes joined Triarc as SVP and CFO. In March 1998, he was named EVP.

Barnes recently announced his retirement, effective late June 2001.

Barnes is credited with playing a “critical role” in Triarc’s sale of SBG, as well as with many aspects of the company’s business over the last five years, according to the Triarc spokesperson. He was primarily responsible for managing the company’s accounting and financial planning functions at both Triarc and its various operating subsidiaries.

SVP Francis T. McCarron was named to replace Barnes. McCarron, 43, joined Triarc as VP, Taxes in January April 1993. Prior to that, he held various tax management positions at Trian Group, L.P. and Triangle Industries.

McCarron holds an MBA from Baruch College, a B.A. from Queens College, and he is also a certified public accountant.

In 2000, Triarc earned $461.9 million on $87.2 million in revenue, compared to $10.1 million on $770.9 million in 1999.