A proposed takeover of Pepsi Bottling by parent PepsiCo would net the bottler’s CEO a $16.5 million payout, according to Bloomberg. CEO Eric Foss, who has headed the soft drink bottling company for 10 years, would benefit from a golden parachute plan in the event that PepsiCo’s bid ultimately proves successful.
So far, management at Pepsi Bottling has been balking at PepsiCo’s bid, which consists of about $6 billion in cash and stock for both Pepsi Bottling and distributor PepsiAmericas. The April 19th bid was rejected by both companies as “grossly inadequate” and “not acceptable,” respectively.
PepsiCo sued its bottler last month, claiming that a poison pill takeover defense had restricted shareholder rights; PepsiCo itself owns about 40 percent of the bottler.
According to regulatory documents, Foss would earn a total of $16.5 million in salary, bonuses, and stock option payouts, as well as a host of other minor benefits should a takeover deal be approved.