EXHIBIT 10.3
VIA FEDERAL EXPRESS
PERSONAL AND CONFIDENTIAL
August 22, 2007
Mr. Timothy McLevish
724 Jane Drive
Franklin Lakes, NJ 07417
Dear Tim, I am very pleased to provide you with this letter confirming the verbal offer that has been extended to you for the position of Executive Vice President and Chief Financial Officer located in Northfield, Illinois, USA. If you accept our offer, we have discussed our interest in you joining Kraft as soon as possible. This letter sets forth all of the terms and conditions of the offer. Listed below are details of your compensation and benefits that will apply to this offer.
Annualized Compensation
Annual Base Salary $ 675,000
Target Management Incentive Plan (90%*) $ 607,500
Target Long-Term Incentive Plan (150%*) $ 1,012,500
Target Annual Equity Award $ 1,475,000
Total Annual Target Compensation $ 3,770,000 * Target as a percent of base salary.
Annual Incentive Plan
You will be eligible to participate in the Kraft Management Incentive Plan (MIP), which is the Company' s annual incentive program. Your target award opportunity under the MIP is equal to 90% of your base salary. The actual amount you will receive may be lower or higher depending on your individual performance and the performance of Kraft Foods Inc. Your 2007 award will be payable in February 2008. Your MIP eligibility will begin on your date of employment.
August 22, 2007
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Long-Term Incentive Plan
You will also be eligible to participate in the Long-Term Incentive Plan (LTIP), which is the Company' s executive long-term cash incentive program. The current LTIP performance cycle began on January 1, 2007 and is scheduled to end on December 31, 2009. Your LTIP eligibility will begin on your employment date. Your target opportunity under the LTIP is equal to 150% of your average base salary during the performance cycle. The actual amount you will receive may be lower or higher depending upon the performance of Kraft Foods Inc. during the performance cycle. It is anticipated that the form of award under this program in the future will be stock-based beginning with the 2008 2010 performance cycle.
Stock Program
Also, you will be eligible to participate in the Company' s stock award program. Stock awards are typically made on an annual basis, with the next award anticipated to be granted in the first quarter of 2008. The most recent stock program design delivered 100% of equity value i ...
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