What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to report on material definitive agreements and decisions made by the Compensation Committee of Kraft Foods Inc. regarding executive compensation, specifically the granting of restricted stock and the establishment of formulas for future annual and long-term incentive awards.

When will the granted restricted stock vest?

The restricted stock awards granted on January 29, 2007, are scheduled to vest approximately three years from the grant date, on February 12, 2010.

How are the 2007 annual incentive awards determined?

The 2007 annual incentive awards will be determined based on an annual performance incentive pool equal to 0.40% of the Company's adjusted net earnings. The CEO is eligible for up to one-third of this pool, with the remaining two-thirds allocated equally among other covered officers, subject to individual award limits.

Are these executive compensation plans designed to be tax-deductible?

Yes, the formulas for the annual incentive awards, long-term incentive awards, and annual stock awards are designed to qualify, to the extent possible, as tax-deductible compensation under Section 162(m) of the Internal Revenue Code, subject to certain limitations.

MDLZ 8-K: Material Agreements

Summary

This 8-K filing from Kraft Foods Inc. (predecessor to Mondelez International) on February 1, 2007, primarily details executive compensation actions taken by the Compensation Committee on January 28, 2007. The key disclosures involve the granting of restricted stock to certain named executive officers and the establishment of formulas for determining annual and long-term incentive awards for 2007 and 2008. These formulas are designed to align executive pay with company performance, specifically by linking awards to adjusted net earnings and adhering to tax deductibility requirements under Section 162(m) of the Internal Revenue Code. Investors should note the specific grants of restricted stock to key executives, including the CEO Irene B. Rosenfeld, with vesting scheduled for early 2010. The performance-based incentive structures for both annual and long-term compensation indicate a clear link between executive rewards and the company's financial results, which is a common practice aimed at driving shareholder value. Further details on executive compensation are expected in the company's 2007 Proxy Statement.

Key Highlights

1Grant of restricted stock to Named Executive Officers, including CEO Irene B. Rosenfeld, effective January 29, 2007, with vesting on February 12, 2010.
2Approval of the formula for 2007 annual incentive awards, based on 0.40% of adjusted net earnings, with specific allocation rules for the CEO and other officers.
3Approval of the formula for 2007-2009 Long-Term Incentive Plan awards, based on 0.40% of cumulative adjusted net earnings over the three-year cycle.
4Establishment of the formula for 2008 annual stock awards, based on 1.00% of adjusted net earnings, with specific allocation for the CEO and other officers.
5Incentive award formulas are designed to comply with Section 162(m) of the Internal Revenue Code for tax deductibility.
6Total shareholder-approved maximums for incentive plans are $10.0 million for annual cash awards and $24.0 million for long-term cash awards, and 1.0 million shares for annual stock awards.
7The company intends to provide further executive compensation details in its March 2007 Proxy Statement.

Mondelez International, Inc. 8-K Report, Material Agreement (Feb 1, 2007)

Summary

Key Highlights

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