Luca Zaramella
Executive Vice President and Chief Financial Officer at MDLZ
Executive
About Luca Zaramella
Executive Vice President and Chief Financial Officer of Mondelēz International since August 2018; age 55; joined the company in 1996 . Company performance under his finance leadership: 2024 net revenues $36.4B, cash from operations ~$4.9B, and free cash flow ~$3.5B . The long‑term incentive program uses three-year metrics (organic net revenue growth, adjusted EPS growth, and relative TSR), with the 2022‑2024 cycle earning an above‑target rating of 127% driven by 200% payouts on organic revenue and EPS growth, partly offset by a 53% payout on relative TSR . In 2024, TSR underperformed peers due to unprecedented cocoa cost spikes despite above‑median organic revenue and EPS growth .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Mondelēz International | SVP Corporate Finance; CFO Commercial & Treasurer | Jun 2016–Jul 2018 | Global finance, treasury, commercial finance leadership |
| Mondelēz International | Interim Lead Finance, North America | Apr–Nov 2017 | Regional finance leadership continuity |
| Mondelēz International | SVP & Corporate Controller | Dec 2014–Aug 2016 | Global controllership, reporting, controls |
| Mondelēz International | SVP Finance, Europe | Oct 2011–Nov 2014 | Regional finance leadership (Europe) |
| Mondelēz International | Various finance roles | 1996 onward | Progressive finance responsibilities |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Not disclosed | — | — | No external board roles disclosed in executive officer biographies |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 872,603 | 932,500 | 1,062,500 |
| Target AIP (% of salary) | — | — | 125% |
| Target AIP ($) | — | — | 1,375,000 |
| Actual AIP Paid ($) | 1,461,680 | 1,567,500 | 1,100,000 |
| All Other Compensation ($) | 178,200 | 242,445 | 502,436 |
Details of 2024 “All Other Compensation”:
- Personal aircraft use $52,233; car allowance $15,000; financial counseling $6,299; employer DC contributions $236,700; tax equalization $190,160; tax preparation $2,044 .
Performance Compensation
| Component | Design | Weighting | 2024 Grants / Payouts | Vesting |
|---|---|---|---|---|
| Annual Incentive Plan (AIP) | Financial and SPI goals; market share overlay | 80% Financial: Volume (15%), Organic Net Revenue (15%), Adjusted Gross Profit (35%), Adjusted Op Income (15%), Free Cash Flow (20); 20% Strategic Progress Indicator Goals | Actual paid $1,100,000 | Annual cash |
| Performance Share Units (PSUs) | 3-year: Organic Net Revenue Growth (25%), Adjusted EPS Growth (25%), Annualized Relative TSR (50) with negative TSR cap at target and target at 55th percentile | 75% of LTI | 2024 grant: 28,975 target units; grant-date fair value $4,349,148 | Cliff vest after performance period (2024–2026), distribution no later than 3/15/2027 |
| Stock Options | 10-year term, 3-year ratable vest | 25% of LTI | 2024 grant: 96,580 options @ $73.13; fair value $1,473,811 | 33% vest on 2/27/2025, 33% on 2/27/2026, 34% on 2/27/2027 |
2022–2024 PSU cycle results (company-wide):
| Metric | Weight | Threshold | Target | Max | Actual | Payout |
|---|---|---|---|---|---|---|
| Organic Net Revenue Growth | 25% | 2.7% | 4.0% | 5.3% | 10.5% | 200% |
| Adjusted EPS Growth | 25% | 5.4% | 7.0% | 9.5% | 14.6% | 200% |
| Annualized Relative TSR | 50% | 25th pct | 55th pct | 90th pct | 27th pct | 53% |
| Final Business Performance Rating | — | — | — | — | — | 127% |
2024 stock vested (realized value):
| Shares Vested | Value on Vesting ($) | Dividend Equivalents ($) |
|---|---|---|
| 58,941 | 3,808,178 | 287,632 |
Equity Ownership & Alignment
| Ownership metric | Data |
|---|---|
| Beneficially owned shares | 771,793; <1% of class |
| Options exercisable within 60 days | 444,576 |
| Unpledged status | None of the stock owned by named individuals is pledged |
| Executive stock ownership guideline | 4x salary for NEOs; 5 years from employment or 3 years post-promotion; includes common stock and unvested DSUs; excludes options and unvested PSUs; 100% net shares must be held until guideline met |
| Compliance | All NEOs satisfied, exceeded or were on track as of 3/12/2025 |
| Anti‑hedging/anti‑pledging & trading controls | Prohibits hedging, short‑selling, derivatives; prohibits pledging/margin for Section 16 officers; blackout periods; pre‑clearance; Rule 10b5‑1 plan requirements for executives (CEO/CFO plans require PCC approval) |
Outstanding equity awards (12/31/2024):
| Type | Grant Date | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration | Unearned PSUs (#) | Market/Payout Value ($) |
|---|---|---|---|---|---|---|---|
| Stock Options | 2/22/2016 | 24,410 | — | 39.70 | 2/22/2026 | — | — |
| Stock Options | 2/16/2017 | 22,570 | — | 43.20 | 2/16/2027 | — | — |
| Stock Options | 2/22/2018 | 22,410 | — | 43.51 | 2/22/2028 | — | — |
| Stock Options | 8/01/2018 | 29,190 | — | 42.83 | 8/01/2028 | — | — |
| Stock Options | 2/22/2019 | 58,940 | — | 47.72 | 2/22/2029 | — | — |
| Stock Options | 2/20/2020 | 65,640 | — | 59.04 | 2/20/2030 | — | — |
| Stock Options | 2/18/2021 | 73,500 | — | 56.13 | 2/18/2031 | — | — |
| Stock Options | 2/24/2022 | 51,044 | 26,296 | 64.65 | 2/24/2032 | — | — |
| Stock Options | 3/02/2023 | 31,557 | 64,073 | 65.36 | 3/02/2033 | 114,760 | 6,854,615 |
| Stock Options | 2/27/2024 | — | 96,580 | 73.13 | 2/27/2034 | 28,975 | 1,730,677 |
Vesting schedules:
- PSUs (2023 & 2024 grants) cliff vest upon PCC approval; distribution no later than 3/15/2026 (2023 grants) and 3/15/2027 (2024 grants) .
- Options 2024: 33% vest 2/27/2025, 33% on 2/27/2026, 34% on 2/27/2027; 2023: 33% vested 3/02/2024, 33% on 3/02/2025, 34% on 3/02/2026 .
Employment Terms
| Provision | Key terms |
|---|---|
| Severance (non‑CIC) | One year base salary ($1,100,000) and actual AIP ($1,100,000), plus outplacement ($12,500); no equity acceleration |
| Change‑in‑Control (double trigger) | 2x base salary + target AIP ($4,950,000 total cash severance); target AIP ($1,375,000), benefits continuation ($38,051), outplacement ($95,000); equity acceleration value estimates $10,889,078 |
| Clawbacks | Dodd‑Frank Rule 10D‑1 policy for restatements; discretionary compensation recoupment for significant misconduct |
| Deferred compensation | 2024 contributions: Supplemental Plan $113,587 employee, $205,650 employer (balance $1,485,565); MEDCP deferral $391,875 (balance $1,140,255) |
Compensation Structure Analysis
- Pay mix skews to performance: other NEOs average ~82% at‑risk and ~63% equity‑based; PSU metric design requires above‑median TSR for target and caps TSR payout at target if absolute TSR is negative, reducing windfall risk .
- 2024 CFO base rose 15.8% to maintain competitiveness; AIP target increased to 125% to align with peer CFOs .
- No option repricing/exchanges; dividends not paid before PSUs vest; severance/equity vesting requires double trigger on CIC; no tax gross‑ups on perquisites or CIC .
Equity Ownership & Pledging Risk
- Strong alignment via ownership guideline (4x salary) and mandatory holding until compliance; all NEOs compliant/on track as of 3/12/2025 .
- Anti‑hedging and anti‑pledging policies reduce misalignment risks; none of Zaramella’s stock is pledged .
Track Record, Value Creation, and Execution Risk
- 2019–2023 TSR outperformed peers in 4 of 5 years; 2024 TSR below median due to cocoa price spike despite above‑median organic revenue and adjusted EPS growth .
- 2022–2024 PSU results show strong revenue/EPS compounding, with TSR dragging relative payout; design mitigates overpayment via TSR cap .
Risk Indicators & Trading Signals
- Upcoming equity events: 2024 options vest 2/27/2025–2/27/2027; 2023 PSUs distribution by 3/15/2026; 2024 PSUs by 3/15/2027—potential scheduled sales under 10b5‑1 plans as windows open .
- Insider trading controls: quarterly blackout periods and mandatory pre‑clearance reduce opportunistic sales risk .
Investment Implications
- Pay‑for‑performance alignment is robust: heavy PSU weighting tied to multi‑year organic growth and EPS, with TSR governance features and double‑trigger CIC terms; minimal shareholder‑unfriendly features (no gross‑ups, no repricing) .
- Near‑term selling pressure may arise around option vest dates and PSU distributions, but anti‑pledging, blackout windows, and 10b5‑1 discipline temper risk; monitor Form 4 activity near 2/27, 3/02, and mid‑March PSU distribution dates .
- Execution risk is concentrated in commodity exposure (cocoa); compensation metrics include FCF and operating income, incentivizing discipline amid input volatility; watch AIP outcomes vs. targets and TSR relative to peers for payout sensitivity .