Details about the compensations to the leaving management team members were also in the annual report. Ed Lonergan, departing CEO, received a total of $ 16.2 million . Overall, 36 million dollars were paid to the seven former Chiquita executives. Interim CEO Brian Kocher could receive up to $ 7.6 million, depending on the reason for the dismissal.
Last year, the U.S. company went into Brazilian hands, putting an end to its merger plans with Fyffes. Besides compensation to departing Chiquita executives, Chiquita also had to pay around 20 million to Fyffes for going back on the merger agreement.
In 2014, around 20,000 people were employed by Chiquita worldwide; 16,000 of these in Latin America. In January and February, 300 contracts were terminated in this region in order to improve the company's performance. Earlier this year, the company announced it would close its headquarters in Charlotte, North Carolina. Its functions have been transferred to locations closer to the clients and producers. This process will take 12 to 18 months and cost between 25 and 40 million dollars.
Competition
Chiquita competes in the banana market with other big players, like Fresh Del Monte and Fyffes, but the vertical integration and direct sourcing from major retailers is also resulting in a more competitive environment. Furthermore, the number of small players in the banana market is also growing. "To remain competitive, we need to supply bananas of uniform and high quality at competitive prices. We must also maintain a strong relationship with the customers and ensure quick and reliable logistics," stated the company in its annual report.