New York: PepsiCo Inc Chief Executive and Chairman Indra Nooyi earned 2011 compensation valued at USD 17.1 million, according to a Securities and Exchange Commission filing released Friday, a 5.8 percent increase from the prior year driven primarily by an increase in the value of pension benefits.
Nooyi's 2011 compensation included USD 1.6 million in base salary, up from USD 1.3 million, her first increase in base pay since becoming CEO in 2006. Stock and option awards totaled USD 9.5 million, roughly equal to year-ago levels, while her incentive plan compensation fell to USD 2.5 million from USD 3 million last year.
Nooyi's pension value and non-qualified deferred compensation earnings was about USD 3 million, up from USD 2.1 million in 2010.
The second-highest listed pay package for top executives went to Eric Foss, the former CEO of Pepsi Bottling Group, a large bottler that Pepsi acquired in 2010. Foss, who retired from PepsiCo in December, had total compensation of USD 15.6 million in 2011, which included a USD 6.5 million severance payment.
Zein Abdalla, chief executive of PepsiCo Europe, earned about USD 10.2 million in 2011.
PepsiCo is undertaking a turnaround this year that will try to boost the company's performance, especially in its Americas beverage division where sales have been lackluster.
PepsiCo is slashing 8,700 jobs and boosting its marketing budget this year by up to USD 600 million that it will invest mostly behind a dozen global brands.
The soda-and-snacks giant has also taken some steps lately to bolster its management bench and preparing for an eventual successor to Nooyi.
Earlier this month, PepsiCo brought in Brian Cornell, former head of Wal-Mart Stores Inc.'s (WMT) Sam's Club division, to head PepsiCo Americas Foods, which includes Frito- Lay snacks and Quaker Foods. Longtime executive John Compton was also elevated to the new role of president.
Pepsi shares closed Friday at USD 65.30, down slightly on the day, and have lost 1.6% so far this year, trailing a rally in the broader markets.