Human Capital & Careers

Ex-Kraft CEO Still Gets Paid

Ousted in June, Roger K. Deromedi won't stop getting his paycheck anytime soon.
Stephen TaubSeptember 6, 2006

Roger K. Deromedi, who was ousted as chief executive officer and a director of Kraft Foods Inc. earlier this year, will receive his bi-weekly salary until February 23, 2007, according to a regulatory filing.

He will also receive a lump sum payment equal to the salary that he would have received had his employment continued during the period between Feb. 23, 2007 and June 26, 2008.

According to the Associated Press, Deromedi’s base salary was $1.2 million.

Deromedi, who in June was abruptly replaced as CEO by Irene B. Rosenfeld, will also receive a payment under the Kraft management incentive plan, pro-rated from January 1, 2006 through June 30, 2006, and a payment under his 2004-2006 long-term incentive plan award, pro-rated from January 1, 2004 through June 30, 2006.

Kraft’s filing comes on a day when two separate Senate committees focused their attention on executive compensation, and incentive-based pay in particular. As of the effective date of the Deromedi’s separation agreement, he will become vested in 141,697 shares of restricted stock. Any other unvested shares of restricted stock previously granted to Deromedi will be forfeited.

Last year, Deromedi earned nearly $8.4 million, including nearly $5 million in restricted stock and a $1.4 million bonus.

He also netted an additional $9 million or so from exercising stock options.

In addition, Deromedi received options in Altria Group, valued at around $3.5 million.

His pay package worked out to nearly $9.9 million — excluding Altria options — in 2004 and to around $7.7 million in 2003.

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