Unilever Faces Shareholder Concerns Over CEO Hein Schumacher’s Potential €17.4m Pay Package.
Unilever may be on the brink of a shareholder dispute as revelations emerge regarding the hefty potential earnings of the company’s new chief executive. Schumacher, who assumed leadership of the conglomerate behind household staples such as Marmite and Dove last June, stands to rake in up to €17.4m (£14.9m) this year if he meets maximum performance benchmarks.
Schumacher’s initial six months at the helm saw him pocket €3.9 million in compensation. This figure includes a €1.86 million annual bonus, on top of his €1.4 million base salary and benefits, which encompassed €292,492 earmarked for his relocation to the UK, as detailed in Unilever’s recently published annual report.
Additionally, Schumacher received €648,000 in compensation for long-term bonuses forfeited upon departing his prior role at Dutch dairy cooperative FrieslandCampina.
However, Schumacher’s potential earnings were curtailed when Unilever’s compensation committee, chaired by Andrea Jung, opted to reduce his annual bonus to 115% of his salary, down from the originally slated 150%. This decision was made despite commendable performance throughout the year. Jung emphasized the need to enhance market competitiveness, noting that the company had fallen short in securing market share and its share price performance failed to meet expectations.
In the preceding year, Unilever’s former CEO Alan Jope and Schumacher collectively earned €6.07 million.
Looking ahead, Schumacher’s fixed annual salary will remain at €1.85 million. This decision comes in response to last year’s rejection by nearly 60% of shareholders of the company’s remuneration report. However, Schumacher stands to augment his earnings substantially by meeting undisclosed basic targets, potentially doubling his income if he achieves maximum performance goals and significantly boosts the company’s share price.
Jung underscored that the revised targets were formulated following consultations with shareholders to ensure alignment with their expectations.
“Following an extensive consultation exercise, the committee is confident that the new remuneration policy will garner broad support from the majority of our shareholders,” she remarked.
