Sodastream CEO to gain up to $95m from PepsiCo acquisition

Daniel Birnbaum Photo: Eyal Izhar

PepsiCo is eager to keep Daniel Birnbaum at the helm of the company after the acquisition is completed.

PepsiCo wants to keep Sodastream International Ltd. (Nasdaq: SODA;TASE: SODA) CEO Daniel Birnbaum in the company after it takes control and will pay him a $35 million bonus, according to the summons to a shareholders' meeting published by Sodastream yesterday. Just before the merger between the two companies, Pepsico undertook to pay Birnbaum a $4 million cash bonus, a $10 million capital bonus with a three-year vesting period, and a $20 million capital bonus with a three-year vesting period, subject to meeting performance targets.

Birnbaum also holds 0.6% of the company's shares with a value of $20 million and blocked shares worth $41 million. In addition to his $34 million in bonuses, he will thus receive up to $95 million.

Other Sodastream executives will also receive a total of $1.9 million in cash bonuses, $3.6 million in capital bonuses, and $1.8 million in performance-linked bonuses.

Three weeks ago, Pepsico announced that it was acquiring Sodastream, a manufacturer of home systems for making carbonated drinks, for $3.2 billion. The acquisition of Sodastream requires approval from the company's shareholders, who will meet to approve the deal on October 9 in the offices of Sodastream in Airport City.

As reported recently in "Globes," bonuses granted to all of Sodastream's employees will total $23.5 million in cash and shares. In addition, every employee with one year or more of seniority will receive a $5,000 bonus, an aggregate total of $12.5 million, when the deal is completed.

Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018</i

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Daniel Birnbaum Photo: Eyal Izhar
Daniel Birnbaum Photo: Eyal Izhar
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