How will William R. Johnson console himself if he’s dismissed as H.J. Heinz‘s chief executive following the ketchup titan’s sale to Warren E. Buffett and a Brazilian investment firm
With a hefty payday, according to a new securities filing.
Heinz disclosed late on Monday that Mr. Johnson, its chief executive of 15 years, could stand to make nearly $213 million if Heinz’s new owners decide to show him the door. That’s through a combination of “golden parachute†payments, stock and stock options awards and additional equity grants that will have likely have vested by the time the deal closes.
It’s a fairly hefty exit package for Mr. Johnson, wh led the negotiations that led to Heinz’s $23 billion sale to Mr. Buffett’s Berkshire Hathaway and 3G Capital, the Brazilian firm that owns a majority stake in Burger King. The two buyers have agreed to pay $72.50 a share for the ketchup maker. (Heinz’s board also set up a special transaction committee, led by Thomas J. Usher and advised by a separate team of bankers and lawyers, to help oversee the negotiations.)
Mr. Johnson will likely collect on the amount â€" at least, assuming that he is indeed terminated â€" since according to the proxy filing Heinz’s buyers have specified that they will not ask management members to roll over their equity into the newly private company.
Mr. Johnson first joined the company in 1982 and rose through the ranks, becoming president in 1996 and adding the chief executive title two years a! fterward.
A spokesman for Heinz said in a statement:
The payments reflect Mr. Johnson’s success in creating billions of dollars in shareholder value over his successful 15-year tenure as President and C.E.O. This success includes delivering total shareholder returns of 177 percent since 2006 and the 19 percent premium to Heinz’s all-time high share price that all Heinz shareholders will receive in the merger. This compensation consists of equity that Mr. Johnson accumulated over his 30-year career with Heinz and existing equity awards and contractual rights that were in place well before the announcement of the proposed merger.
