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Unilever to freeze chief executive pay for two years
https://www.whatjobs.com/news/united-kingdom/uk-employment-news/unilever-to-freeze-chief-executive-pay-for-two-years
By Nithya Bose in UK Business News, posted October 31, 2023
Unilever is freezing its CEO’s salary for the next two years after shareholders revolted against top executives' pay packages.
The company, known for brands like Ben & Jerry’s and Hellmann’s, said Hein Schumacher’s fixed pay will remain unchanged in 2024 and 2025.
At its annual general meeting in May, 58 percent of shareholders voted against the lucrative pay packages for the board of directors.
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Upon assuming the role in July, Schumacher inherited one of the highest-paid executive positions in the FTSE 100.
He got an annual salary of 1.85 million euros (equivalent to £1.62 million), along with potential bonuses and long-term incentive shares.
The recent announcement signifies that his fixed pay will not be reviewed until 2026.
The preceding CEO, Alan Jope, received a total of 5.4 million euros (about £4.7 million) last year.
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It included a 3.7 million euro (approximately £3.2 million) bonus within his remuneration package.
Unilever said talks with shareholders found that the primary reason for the votes was “the approach taken to setting the incoming CEO’s (chief executive officer’s) remuneration on appointment.”
Additionally, Unilever disclosed it has initiated conversations with shareholders regarding renewing its remuneration policy in 2024.
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The company said the feedback received thus far has been valuable and will be instrumental in shaping the final proposals.
In a separate development, Schumacher remarked Unilever's performance in recent years had not matched its potential.
As a response, the company unveiled an "action plan" designed to foster growth, focusing on its 30 most profitable brands.
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