Kraft Board Approves $16.2 Million in Executive Payouts Tied to Merger

By Tess Stynes 

Kraft Foods Group Inc. said its board approved a combined $16.2 million in bonuses and make-whole payments for executives related to the packaged-food company's pending merger with H.J. Heinz Co.

Kraft's board, with Heinz's consent, approved bonuses for executives including $5 million for Chairman and Chief Executive John Cahill, $1.5 million for General Counsel Kim Rucker and $500,000 for Chief Financial Officer James Kehoe.

Mr. Cahill also will receive an estimated make-whole payment of $11.1 million related to the pending deal, while Ms. Rucker will get an estimated $3.1 million.

Kraft's merger with Heinz, which is owned by Brazilian private-equity firm 3G Capital Partners LP, will create the third-largest food and beverage company in North America. Kraft shareholders are set to vote on the merger plan July 1.

Kraft--home to supermarket brands such as Oscar Mayer, Maxwell House, and Velveeta--was spun off in 2012 from Mondelez International Inc.

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