PepsiCo Inc chief executive Indra Nooyi received a total compensation of $17.1 million last year, up 6 per cent from 2010, even as the food and drink company fell short of key internal performance targets.
The increase comes mostly from a 23-per cent jump in Nooyi's base salary, her first raise in five years as CEO – as also a gain in the value of her retirement benefit. Nooyi, 56, is under pressure from Wall Street for neglecting PepsiCo's North American soft drink business while she focused on healthier products.
Nooyi's base salary was $1.6 million in 2011, up from $1.3 million before and the new salary was more in line with that of her peer group, PepsiCo said in its annual proxy statement, filed on Friday.
The change in Nooyi's pension value and deferred compensation was $3 million in 2011, as against $2.1 million in 2010, although her incentive compensation was down to $2.5 million from $3 million in 2010.
Pepsi said the company's net revenue, net income and earnings-per-share growth were slightly below the stretch targets established by the compensation committee under its incentive plans.
Apart from the impact of currency fluctuations, PepsiCo clocked a revenue growth of 13 per cent, net income rose by 4 per cent while earnings per share grew 5 per cent in 2011. Its targets called for gains of 14 per cent, 7 per cent and 7 to 9 per cent, respectively.