8-KLeadership Changes

Mondelez International, Inc. 8-K Report, Executive Changes (Dec 22, 2010)

Filed December 22, 2010For Securities:MDLZ

Summary

This 8-K filing from Kraft Foods Inc. (which would later become Mondelez International, Inc.) on December 22, 2010, announces the adoption of the Kraft Foods Inc. Long-Term Incentive Plan (LTIP). The LTIP is designed to align executive compensation with the company's long-term financial performance and shareholder returns, with performance periods commencing on or after January 1, 2011. This plan is a sub-plan under an existing shareholder-approved incentive plan and is intended to qualify for tax deductibility under Section 162(m) of the Internal Revenue Code.

Key Highlights

  • 1Adoption of a formal Long-Term Incentive Plan (LTIP) by the Human Resources and Compensation Committee.
  • 2The LTIP aims to motivate executive officers and senior management to achieve long-term financial goals and enhance shareholder returns.
  • 3Performance periods for the LTIP will begin on or after January 1, 2011.
  • 4The LTIP is a sub-plan under the Kraft Foods Inc. Amended and Restated 2005 Performance Incentive Plan.
  • 5Awards under the LTIP are intended to be 'qualified performance-based compensation' under Section 162(m) of the Code to preserve tax deductibility.
  • 6Awards can be paid in cash or Kraft Foods common stock, with payout amounts based on objective formulas tied to performance targets.
  • 7No awards have yet been granted under the LTIP for the performance period starting January 1, 2011.

Frequently Asked Questions

The primary purpose of the LTIP is to motivate Kraft Foods' executive officers and senior management to achieve the company's long-term financial goals and deliver top-tier shareholder returns over designated performance periods.

The LTIP will govern performance periods beginning on or after January 1, 2011. However, as of the filing date (December 22, 2010), no awards have been granted under the LTIP for the performance period commencing January 1, 2011.

Awards will be determined based on an objective formula, taking into account a participant's incentive target (often a percentage of base salary or an incentive pool) and the extent to which long-term performance goals are met. Payouts can be made in cash or shares of Kraft Foods common stock, at the discretion of the compensation committee.

Yes, the LTIP is designed to grant awards that are intended to qualify as 'qualified performance-based compensation' under Section 162(m) of the Internal Revenue Code. This is intended to allow Kraft Foods to preserve the deductibility of compensation paid to covered executive officers.