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Kraft Heinz CFO Paulo Basilio departs in March

Paulo Basilio, two-time chief financial officer of a major consumer goods company

Kraft Heinz Ltd

He pruned the company’s portfolio, reduced debt, and trained his own successor.

Manufacturers of products such as Heinz Tomato Ketchup and Craft Mac and Cheese on Friday said Basilio will resign as part of a planned transition starting March 1. It is a $ 19 billion US business and leads a digital transformation unit.

Basilio was Chief Financial Officer of HJ Heinz Co. from 2013 to 2015 and led the financial functions of the post-merger entity prior to the merger with Kraft Foods Group Inc. From 2015 to 2017..He returned to his previous job 2019 After the company missed some forecasts, it wrote down the value of some brands and reduced dividends.

Basilio promoted a variety of financial professionals, including Maciel, who participated in the company for several years in 2013 and held numerous positions in the Kraft Heinz financial organization.

“One of Paul’s greatest achievements was the development of key talent within the finance team, including the individual I chose to succeed, Andre Maciel,” CEO Miguel Patricio said in the news. Described in the release.

Building a deep bench of internal candidates is an important task for financial professionals. According to the Crist Kolder Volatility Report, which tracks executive movements, promotion from within the organization has recently increased, with 61.5% of CFOs of S & P 500 and Fortune 500 companies in-house in 2021. It was adopted.

During his second tenure, Basilio pruned the Kraft Heinz portfolio. Sale of nut business, Including the Planters brand, for $ 3.35 billion in 2021 Some of that cheese brand It was $ 3.2 billion in 2020.

According to S & P Global Market Intelligence, he led the company’s finances through a surge in consumer demand in the early months of the pandemic, reducing debt at the end of September to $ 21.80 billion, down from $ 27.81 billion at the end of 2019. I did. , Data provider.He also helped the solution Research According to the Securities and Exchange Commission, which accused food manufacturers of manipulating expenses during periods of aggressive cost reduction.

Like many other food companies, Kraft Heinz Fighting higher costs It stems from supply chain challenges and inflation in packaging and key products such as dairy, meat and coffee. The company has been raising prices across categories in recent months to offset some of the cost increases.

The next CFO, Maciel, has years of experience in managing costs and revenue. In the past, he led the company’s zero-based budgeting program. This is a tool that companies use to reduce overall business costs by building their annual budget from scratch.

Mr. Maciel could help Kraft Heinz continue its efforts to offset inflation and rising supply chain costs. For example, a consumer capital survey in Morningstar’s research department said that it could raise prices or reduce the quantity of certain products in a package without changing prices.

“Overcoming price increases to offset rising commodity costs is undoubtedly the way companies can continue to pursue,” Rush said.

Kraft Heinz said in a filing with the securities regulator that in his new position, Maciel’s annual salary will be $ 650,000 and bonuses will be up to 175% of his base salary. He will receive the $ 2 Million Initial Merit Equity Award in March 2022. It consists of a 60% performance share unit and a 40% restricted equity unit, which vests over time, especially among compensations.

Kraft Heinz declined to comment on anything other than news releases.

Write in Nina Trentman Nina.Trentmann@wsj.com

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Kraft Heinz CFO Paulo Basilio departs in March

Source link Kraft Heinz CFO Paulo Basilio departs in March

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