Monday, April 14, 2014

Smithfield execs land windfall

There seems to be a lot more money in managing hog-packing plants than in farming to raise hogs.

WH Group – which acquired Smithfield Foods Inc. last year – awarded 573.1 million new shares to Chairman and CEO Wan Long and another 245.6 million shares to Yang Zhijun, an executive in charge of investments, acquisitions and financing.

At the time of their issuance in October 2013, the stock was worth a total of about $597 million, a sum that’s expected to rise in value once the Initial Public Offering of 3.56 billion shares is completed on April 22.

The Initial Public Offering is hoping to raise $5.3 billion.

The company said the shares represent a reward for the role the executives paid in completing the $4.9-billion acquisition of Smithfield last year.

There was no reward for farmers.