Kraft Heinz

Your proxy analysis should be prepared as a formal student paper following APA
guidelines (7th ed.). Respond to the questions posed above within an essay
format; do not simply list and answer the questions. The analysis must have a
title page followed by an abstract and text with major section headings
addressing each of the issues identified by the questions above. For example,
the first section heading after the Abstract might be titled “Executive
Compensation Philosophy.” This heading should be followed by a narrative
discussion and evaluation of the “executive compensation objectives” or the
“compensation philosophy of the company.” Be sure to address the questions
posed above in your narrative response in each section. The paper should be
double-spaced using a 12 pt font and limited to a maximum of 10 pages,
excluding the title page and references. So be succinct. One page per major topic
area should be adequate to ensure adequate coverage. Back up your statements
with arguments, citations, and references.
For the company you select, you will analyze the company’s executive compensation program.
Specific factors to be considered are presented below. Refer to materials in the Week 7 module
reading “Executive Compensation Disclosure Handbook” for clarification of compensation
terms and to SEC Regulation S-K, Item 402 – Executive Compensation, for disclosure
requirements. Address the following questions:
1. What are the objectives of the company’s executive compensation program? Do they
appear to support the company’s business strategy? If so, how? Demonstrate the linkage.
2. On what factors is the CEO assessed? Based on what you have learned about
performance appraisal in this course, are the factors/measures used to assess CEO
performance appropriate? Are the factors used to assess the performance of the CEO
adequately described?
3. What was the CEO’s total compensation ($) for the most recent year? Does this level of
compensation appear to be warranted? Why or why not? Support your response with
appropriate arguments, references, or comparisons.

What is the targeted mix of compensation (expressed as a % of salary, % of annual
incentive, and % of long-term incentive) for the CEO? Is this a “good” mix of measures?
Why or why not?
5. What percentage of the CEO’s total compensation is “at risk” (i.e., performance-based)?
Does the amount of pay at risk change your view of whether executive pay is too high?
Why or why not?
6. What percentage of the CEO’s total compensation is equity-based (long-term incentive
paid in stock)? Why do companies use equity-based compensation?
7. Many professionals rely on comparisons of executive compensation with Total
Shareholder Return (TSR) as an indicator of “fairness” in executive pay. Does the
company you selected use TSR? What is your opinion of TSR as a measure for assessing
how well the CEO is performing? What alternatives are proposed by other professionals?
Support your response with appropriate references. Does the company you selected use
TSR? If so, how?

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