Incoming Chief Executive of Campbell’s Soup Mark Clouse is expected to receive a pay package worth $7.4 million in 2019, as stated by the world’s biggest soup maker on Friday.
Clouse was appointed as the new CEO of Campbell’s on Thursday, ending a 7-month search process that began in May after former CEO Denise Morrison abruptly retired from the position she had held for years.
The incoming CEO is a food industry veteran. He had been in the industry for over two decades. Clouse, age 50, is the former chief of Pinnacle Foods, where his tenure marked a surge of 54% in stock value. He earned $14.1 million in 2016 and $5.22 million the following year.
Campbell’s stated in a filing that the pay package which Clouse will get in 2019 includes a base salary of $1 million and a possible bonus of $1.4 million. On his first day at Campbell’s on January 22, Clouse is expected to receive a long-term incentive award worth $5 million.
Clouse’s appointment was announced weeks after Campbell ended its proxy fight with Third Point LLC, a New York-based hedge fund.
Campbell is reported to have had poor earnings for years. Brittany Weissman, Wall Street analyst at Edward Jones, stated on Thursday that the soup company needs a new executive that will revamp the company and give new life to its top brands.
Under Clouse’s tenure in 2018, Pinnacle was acquired by ConAgra Brands for $8.1 billion. Sean Connolly, the current CEO of ConAgra, said that Pinnacle would be less profitable than expected. Since buying Pinnacle, Connolly realized that the company’s problems have to do with the innovation of its major brands, including Duncan Hines and Birds Eye.
Despite that, Weissman said that Clouse has had remarkable career achievements for years and that he is still the best candidate to be Campbell’s new CEO.
Campbell’s Soup Co. shares on Friday fell to 5.1% and went down about 26% in overall this year.