Kraft and Heinz are preparing to merge two names that are among the oldest in the industry, changing up a few things in order to do so.
Among those changes, Kraft executives are expected to receive a significant return on their work tied to the merger struck in march with Heinz, approved by Kraft’s board and consented by Heinz on June 22nd.
According to the Chicago Tribune, Kraft is anticipating a $16.2 million cost in excise taxes to make the following payments to its executives upon the merger’s successful close:
Kraft will reportedly pay $11.1 million for Cahill’s award and $3.1 million for Rucker’s in excise, which were approved by the corporation’s compensation committee of Kraft's board and consented by Heinz last week, according to the Tribune.
These aren’t the only preparations the company is making. According to the Crain’s Chicago Business, Kraft employees are also bracing for significant job cuts once the merger with Heinz is complete. While the report stated that Cahill told employees in a video shortly after the merger was announced “cost-cutting will be a focus. I do want to be candid,” it also specified that neither company has publically stated that layoffs will be a part of that cost-cutting.
Kraft did comment to the Tribune, however, that Heinz has approached specific people in Kraft management about staying on after it becomes Kraft Heinz, but no offers or arrangements have been made yet.