UPDATE 1-Kraft CEO’s pay falls in 2010 on unmet goals

* Total down 27 pct, including special 2009 payout

* 2010 annual incentive award drops 46 pct to $2.1 mln

CHICAGO, March 31 (Reuters) – Kraft Foods Inc (KFT.N: Quote, Profile, Research) Chief
Executive Officer Irene Rosenfeld took a sharp pay cut in 2010
after the largest North American food company failed to meet
revenue and profit targets.

Rosenfeld’s total compensation fell 27 percent to $19.29
million, according to the company’s annual proxy filing,
although the comparison is skewed by a $6.6 million payout in
2009 under a three-year bonus plan that is no longer in
effect.

But Rosenfeld’s annual bonus fell 46 percent to
$2.13 million. The decline in that area stemmed from the
company not meeting its targets for organic revenue or
operating income, spokesman Mike Mitchell said.

Organic revenue, which excludes the impact of currency
fluctuations and most acquisitions and divestitures, rose 3.5
percent, below Kraft’s 5 percent goal.

Operating income was $6.5 billion, below the company’s
target of $6.9 billion, Mitchell said.

In 2010, Kraft was hit by soaring commodity costs in the
second half of the year and consumers looking to rein in
spending on food.

Kraft shares rose 15.9 percent in 2010, compared with a
12.8 percent increase in the Standard & Poor’s 500 index
(.SPX: Quote, Profile, Research).
(Reporting by Brad Dorfman; Editing by Lisa Von Ahn)

UPDATE 1-Kraft CEO’s pay falls in 2010 on unmet goals