Pay for General Mills CEO drops to $13 million

Jeff Harmening, the chairman and chief executive of Golden Valley-based General Mills, saw his realized pay decrease 25% from the previous year. Harmening earned a smaller bonus than a year ago and realized less from his previously issued long-term equity awards.

Harmening did get a $100,000 increase to his annual salary rate and increases in the potential bonus and long-term equity awards he can earn in future years, meaning his future compensation could increase over the $13.5 million he earned in fiscal 2024 and the previous year’s total of $18 million.

Jeff Harmening

Chairman, CEO

General Mills Inc.

Note: In fiscal 2024 General Mills sold less food as value-seeking consumers adjusted their spending, driving down the company’s sales and earnings. That in turn resulted in a lower annual cash incentive bonus for Harmening and other senior executives.

Harmening’s bonus is based 80% on company performance and 20% on individual achievement. Harmening earned a bonus of $1.2 million, down from the $3.6 million he earned in each of the previous two year years.

Based on the company’s sales and adjusted operating profits, Harmening earned 44% of the potential company award, and the board granted 75% of the individual achievement award “in recognition of his strong leadership through a highly dynamic and challenging operating environment in fiscal 2024,” according to the proxy statement.

General Mills uses a mix of long-term equity awards for senior leaders. Half of the awards are performance share units that are based on revenue and earnings targets over three years; restricted stock units that vest over four years and stock options that expire after 10 years. Executives earned the maximum over the fiscal 2022 to fiscal 2024 performance period.

Harmening also receives a $100,000 increase in his base salary to an annual rate of $1,350,000. The board also increased the intended target of his long-term equity awards from approximately $8.7 million to $10 million.