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

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.

Write to Tess Stynes at [e-mail]

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