Heinz was bought by Warren Buffett’s Berkshire Hathawy (and 3G Capital) in February 2013 for $28 billion. Since then the firm has cut 3,400 jobs and closed factories in an effort to boost profits as they pay current boss Bernardo Hees $9.2 million. However, as The BBC reports, the most stunning dichotomy in this tale is former Heinz CEO William Johnson’s $110.5 million payday for the final eight months of 2013… Perhaps more worryingly, Buffett has proclaimed this a “model for future buys.” When will the President replace Immelt with Buffett as his jobs advisors?
Former Heinz chief executive William Johnson received $110.5m (£66.1m) for the final eight months of 2013, the food firm disclosed in a filing to US regulators.
Current boss Bernardo Hees, who joined the firm in June, received $9.2m.
Mr Hees has cut more than 3,400 positions and closed factories in an effort to boost profits.
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The firm, whose products include ketchup, baked beans, and a variety of frozen meals, reported a net loss of $71.7m from February to December 2013.
It announced the closure of three US plants in November and two European processing plants in February this year.
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He also said the acquisition could serve as a model for future buys.
“With the Heinz purchase we created a partnership template that may be used by Berkshire in future acquisitions of size,” he wrote.
Another template the average citizen should be worried about?
via Zero Hedge http://ift.tt/1iyxJwD Tyler Durden