Ex-US Army captain to take over at Diageo

Diageo has appointed its first female boss after Sir Ivan Menezes canceled his decade at the helm.

Former US Army captain Debra Crew will take over as CEO of the beverage giant in July, bringing the number of female bosses in the FTSE 100 to 10.

She joins Emma Walmsley at GSK, Liv Garfield at Severn Trent and Alison Rose at Natwest in the exclusive club.

The 52-year-old will take over the reins of a company with brands such as Guinness, Smirnoff and Johnnie Walker and an annual turnover of more than £15 billion.

Her appointment came as Menezes announced plans to retire after 26 years with the company, including ten in the senior position.

Menezes was praised for expanding Diageo’s portfolio and acting as a steady hand during the pandemic.

Since he took charge in 2013, the value of the company has grown by around £30 billion thanks to multiple acquisitions, mainly of premium brands. It is now worth £80 billion.

The 63-year-old has also driven growth in emerging economies such as Greater China and India, where Diageo sells more than 200 beverage brands in 180 markets.

And Diageo shares are up more than 85 percent during this period, while shareholder returns significantly outperformed the broader index.

As one of the longest-serving bosses in the game, he was paid a whopping £7.9 million in 2022, including a base salary of £1.3 million.

Last year’s package included a benefits package of £133,000, giving him a ‘product allowance’ to sample the company’s drinks, including popular brands such as Baileys and Tanqueray gin.

During his time as chief executive, Menezes has earned a total salary package of £55.7 million, making him one of the highest paid chiefs on the London Stock Exchange.

Diageo will pay Crew a similar pay package to her male predecessor, with a base annual salary of £1.4 million, as she manages one of the UK’s largest publicly traded companies.

Crew began her career as a military intelligence officer in the U.S. Army before working for consumer titans like Pepsico, Kraft Foods, Nestle, and Mars.

She briefly led cigarette company Reynolds American leading up to its acquisition by British American Tobacco, later joining Diageo as a non-executive director in 2019.

A year later, she took charge of Diageo’s operations in North America, its largest market.

Born in Hawaii, she moved to London when she was appointed Chief Operating Officer of Diageo in October 2022.

In its latest half-year results, Diageo revealed net sales were up 18.4 per cent to £9.4 billion, beating analysts’ forecasts, thanks to stronger demand for premium spirits and price increases and productivity savings offsetting cost inflation.

The company did warn of a growth slowdown in its critical US market.

Derren Nathan, head of equity research at Hargreaves Lansdown, said Menezes would be a “difficult task to follow,” especially as growth is expected to slow in the near term as consumers tighten.

Meanwhile Denise Wilson, chief executive of FTSE Women’s Leaders, said Crew’s appointment was “a testament to both the growing momentum in the drive to bring gender diversity to the top table.”