The truth about what Kellogg says, what actually goes on, and their real plans for the future.
Over the last half-century the Kellogg Company has deliberately built a reputation as a first-class employer, a pillar of the community and a good corporate citizen. But actions speak louder than words, and its actions over the last fifteen years show that Kellogg looks more like a large Wall St. bully, than a kind, benevolent employer.
Simply put, Kellogg makes a ton of money, gives it to large shareholders and top executives, initiates efficiency programs that cost the company billions, and then not only blames its workforce for costing too much, but then asks them and their communities to subsidize and pay for their greed. The result is closed plants, loss of a skilled workforce, the destruction of middle-class jobs, and devastated communities.
EXECUTIVE COMPENSATION: Over the past six years, Kellogg has paid out an astounding $55 million to compensate its CEO (see CEO COMPENSATION below). This does not account for the millions per year that other executives receive.
SHARE BUYBACKS: In May 2013, Kellogg announced a new buyback program, one that will cost the company $1 billion. This follows a 2010 buyback program that cost Kellogg $2.5 billion. That’s $3.5 billion in three years.
DIVIDEND PAYOUTS: Kellogg, whose quarterly dividend payments have risen 82% since 2005, gives out one of the most generous dividend payouts in the food industry. The chief beneficiary of these payouts are the large institutional shareholders-banks and investment firms-that hold millions of shares.
RESTRUCTURING PROGRAMS: Kellogg’s new “Project K” efficiency program will cost the company $1 billion to implement. This follows the excessive costs associated with the Company’s 2009 efficiency program “K-Lean”.
Kellogg’s CEO John Bryant raked in $8 million in 2013. He also got tens of millions in other “benefits.”