The Israeli company SodaStream is to be acquired by PepsiCo for $3.2 billion.
The CEO of SodaStream, Daniel Birnbaum, could earn up to $34 million in bonuses following PepsiCo’s acquisition of the carbonated beverage manufacturer, according to a document issued to shareholders ahead of a special general meeting to approve the multi-billion dollar deal.
The meeting, which will be held at SodaStream’s offices near Tel Aviv on October 9, will vote on the proposed $3.2 billion acquisition of SodaStream from Israel by PepsiCo, announced in August.
According to the document published on Wednesday, PepsiCo views retaining the current employees of the company as “the key to the success of the merger” and has therefore developed a cash and stock retention program for Birnbaum and other SodaStream executives.
If the deal is approved, Birnbaum will earn $4 million in cash rewards over a set period, and $10 million in stock grants over the next three years.
According to data compiled by Bloomberg, Birnbaum holds 137,277 shares in SodaStream and is entitled to a maximum of 285,000 additional shares based on a performance agreement approved this year by SodaStream shareholders.
With PepsiCo acquiring the company at $144 in cash per ordinary share, Birnbaum, who was appointed CEO in 2007, is expected to collect about $61 million at the end of the acquisition in addition to the retention bonuses.
Announcing the acquisition plan, Ramon Laguarta, CEO of PepsiCo, stated that SodaStream would remain in Israel for at least 15 years, possibly indefinitely.
“We promised it for 15 years, but I think it will be forever,” said Laguarta. “It has proven to be a successful business, so why derail a company that is doing so well?”
The company employs a diverse workforce, consisting of Israelis, Bedouins, and Palestinians, near the city of Rahat in the Negev, after closing its West Bank factory in 2016 under pressure from the anti-Israeli boycott movement.
After the acquisition, PepsiCo plans to open a new factory in Israel.
Stanley Stern, chairman of the board of SodaStream, told shareholders that the company’s board unanimously recommends voting in favor of the proposal at the upcoming October meeting.
