Summary
This 8-K filing from PepsiCo (PEP) provides details regarding the compensation package for Ramon Laguarta upon his appointment as Chief Executive Officer, effective October 3, 2018. The amendment to the previous disclosure outlines Mr. Laguarta's annual base salary and incentive targets, which are significant components of his overall remuneration. Investors should note these details as they reflect the company's commitment and investment in its new leadership. The information is crucial for understanding executive compensation trends and the financial implications of leadership transitions within the company.
Key Highlights
- 1Ramon Laguarta's appointment as CEO is effective October 3, 2018.
- 2Mr. Laguarta's annual base salary as CEO will be $1,300,000.
- 3His annual incentive target is set at 200% of his base salary.
- 4For 2018, the annual incentive award will be prorated based on performance and time served in the CEO role.
- 5The prorated incentive calculation uses different target percentages for the initial nine months and the final three months of 2018.
- 6Mr. Laguarta will remain eligible for PepsiCo's long-term incentive program.
Frequently Asked Questions
This filing is important as it details the specific compensation package for PepsiCo's new CEO, Ramon Laguarta. Investors can assess the company's investment in its leadership and understand the financial terms associated with this key executive appointment.
Ramon Laguarta officially becomes Chief Executive Officer of PepsiCo on October 3, 2018.
For 2018, Mr. Laguarta's incentive award will be prorated. The first nine months will be based on an annual target of 150% of his prior base salary, and the final three months will be based on an annual target of 200% of his new CEO base salary. The actual payout will depend on PepsiCo's pre-established performance goals.
No, Mr. Laguarta will continue to be eligible to participate in PepsiCo's long-term incentive program, meaning his compensation structure includes long-term equity or performance-based awards in addition to his base salary and annual incentive.