(Alliance News) - Unilever PLC has said it is freezing its chief executive's salary for the next two years after shareholders revolted over pay packages given to top bosses.
Hein Schumacher will not be eligible for a fixed pay increase in 2024 and 2025, the maker of Ben & Jerry's and Hellmann's said.
It comes after 58% of shareholder votes were cast against the group's pay deals for directors at its annual general meeting in May.
Schumacher, who took over at the helm in July, inherited one of the best paid chief executive roles in the FTSE 100 with an annual salary of EUR1.9 million as well as potential bonus and long-term incentive shares.
The decision on Monday means he will not have his fixed pay level reviewed until 2026.
Previous chief executive Alan Jope was handed EUR5.4 million last year, including a EUR3.7 million bonus, under the remuneration deal.
Unilever said it had spoken to shareholders and found that the "primary reason" for votes against the directors' pay was "the approach taken to setting the incoming CEO's (chief executive officer's) remuneration on appointment".
"Specifically, whilst the majority of shareholders agreed that the fixed pay level for the new CEO appropriately reflected the size and complexity of the role, there was a preference that alignment with the market could have been achieved gradually, rather than in one step on appointment," it said.
Unilever also said it had started discussions with shareholders over the renewal of its remuneration policy in 2024, adding that the feedback so far had been "valuable" and will help shape final proposals.
Last week, Schumacher said the consumer goods giant's performance in recent years has "not matched our potential".
Unilever revealed it was launching an "action plan" to drive growth, involving focusing on its 30 most profitable brands.
source: PA
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Unilever (ULVR)
