Unilever shareholders revolt in opposition to CEO’s €5.1 million pay packet
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hareholders of Magnum-to-Marmite client items large Unilever have rejected the company’s pay coverage, which might have handed CEO Alan Jope as much as €5.1 million (£4.5 million) this 12 months.
Shareholders representing 58% of voting shares rejected the coverage, which included a €1.6 million base salary for Jope, who will retire on the finish of the 12 months, in addition to a bonus of as much as 225% of the bottom wage. That coverage was unchanged from final 12 months, however a 42% improve from the 12 months earlier than that.
However, the vote is advisory and, subsequently, the corporate can nonetheless hand out the pay deal to its high executives.
Finance boss Graeme Pitkethly was set to make a base wage of €1.2 million and a bonus of as much as €2.2 million.
A big minority of shareholders, representing a 17% stake, additionally voted down the movement to re-elect Nils Andersen as Unilver’s chairman.
The FTSE 100 agency has confronted criticism in current months because it hikes the costs of its items amid wide-ranging inflation. Last month, it revealed a ten.7% rise in gross sales for the primary quarter of the 12 months, which was virtually totally resulting from value rises as gross sales volumes have been near flat.
At the time, Jope said that Unilever had handled price rises “responsibly”.
Earlier at this time, London Stock Exchange CEO Julia Hoggett known as for the bosses of high UK corporations to be paid extra, in an effort to maintain London listings aggressive with the US.
Unilever mentioned in a press release: “While the board is pleased that all other resolutions were carried with large majorities, we are disappointed that the advisory vote on the Directors’ Remuneration Report was not passed.
“We are committed to shareholder engagement and will consult over the next few months to listen carefully to feedback and determine any next steps.
“In accordance with the UK Corporate Governance Code, we will publish a further statement detailing the outcome of our shareholder engagement in relation to the above resolution, including any actions taken as a result, within six months of the 2023 Annual General Meeting.”