– Former Heinz CEO Gets $110 Million As Firms Cuts 3,400 Jobs (ZeroHedge, March 11, 2014):
Heinz was bought by Warren Buffett’s Berkshire Hathawy (and 3G Capital) in February 2013 for $28 billion. Since then the firm has cut 3,400 jobs and closed factories in an effort to boost profits as they pay current boss Bernardo Hees $9.2 million. However, as The BBC reports, the most stunning dichotomy in this tale is former Heinz CEO William Johnson’s $110.5 million payday for the final eight months of 2013… Perhaps more worryingly, Buffett has proclaimed this a “model for future buys.” When will the President replace Immelt with Buffett as his jobs advisors?
Former Heinz chief executive William Johnson received $110.5m (£66.1m) for the final eight months of 2013, the food firm disclosed in a filing to US regulators.
Current boss Bernardo Hees, who joined the firm in June, received $9.2m.
Mr Hees has cut more than 3,400 positions and closed factories in an effort to boost profits.
The firm, whose products include ketchup, baked beans, and a variety of frozen meals, reported a net loss of $71.7m from February to December 2013.
It announced the closure of three US plants in November and two European processing plants in February this year.
He also said the acquisition could serve as a model for future buys.
“With the Heinz purchase we created a partnership template that may be used by Berkshire in future acquisitions of size,” he wrote.
Another template the average citizen should be worried about?