The CEO of PepsiCo Inc. received a 5 percent pay cut last year as the snack food and soft drink maker struggled in the recession to sell its sodas to increasingly health-conscious shoppers, according to an Associated Press calculation of figures disclosed in a regulatory filing Tuesday.
Indra Nooyi's total compensation was $14.2 million in fiscal 2009, down from $14.9 million the previous year.
Nooyi's base salary totaled $1.3 million in 2009, the same as 2008. She received a performance-related cash bonus of $3 million, up from $2.6 million the previous year.
Her 2009 compensation also included stock options and restricted stock valued at $9.7 million on the day they were granted. In 2008, she received similar awards valued at $10.8 million.
Nooyi, 54, received perks valued at $200,603 in 2009, on par with the previous year. Her perks last year included $157,388 for personal use of the company jet, $28,559 for a car and driver and $7,350 in company contributions for retirement plans.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the Securities and Exchange Commission.
Nooyi, the company's CEO since 2006, has been leading PepsiCo through a tumultuous time in the beverage industry. Drink sales are falling as shoppers cut their spending in the recession and seek out juices and teas, rather than sugary drinks.
Last year the company announced a deal to buy its two largest North American bottlers for $7.8 billion. The move lets PepsiCo control distribution of the majority of its products and be quicker to market with new drinks to keep up with shoppers' changing tastes.
The company told investors this week that last year was among the toughest it has ever seen. It laid out changes including reformulating brands to remove sweeteners like high fructose corn syrup, rebranding its drinks and developing more low- or zero-calorie natural sweeteners. PepsiCo, based in Purchase, N.Y., also said it plans to cut sodium in each serving of its key brands by one-fourth in five years, among setting other goals to lessen sugar and saturated fat.
The company's annual profit improved to $5.95 billion, or $3.77 per share, up from $5.14 billion, or $3.21 per share, in the prior year.
Full-year revenue was nearly flat at $43.2 billion.
Shares rose 11 percent to finish the year at $60.80. Shares were trading Tuesday down 31 cents to $66.55 after setting a new 52-week record of $67 earlier in the session.
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