Unilever investors revolt over fat cat pay

Unilever suffered a nosebleed as shareholders rioted in the boardroom over fat cat pay.

At its annual general meeting, the consumer goods group behind Hellmann’s, Dove and Ben & Jerry’s ice cream saw 58 percent of participating shareholders vote against its 2022 pay report.

Unilever said it was “disappointed” with the outcome, although the vote was advisory rather than binding.

“We are committed to shareholder engagement and will consult in the coming months to carefully listen to feedback and determine any next steps,” the company added.

Outgoing boss Alan Jope, who took over as CEO in January 2019, was paid £4.8 million last year, including a base salary of £1.37 million.

That brought his salary over the four years from 2019 to 2022 to £16.4 million.

But his reign has proved controversial. Jope launched an unsuccessful bid last year to acquire Haleon, the Sensodyne toothpaste maker, for £50bn.

And he’s clashed with shareholders, particularly fund manager Terry Smith, over the way the company is run. Smith has accused Unilever of “virtue signaling” with its ethically-focused marketing.

But while the company has a reputation for being “awakened,” it continues to operate in Russia even after the invasion of Ukraine.

Activist investor Nelson Peltz, whose daughter Nicola married David last year and Victoria Beckham’s son Brooklyn, joined Unilever’s board after taking a stake in July 2022.

Just two months later, Jope said he would be stepping down after nearly four decades with the company.

He will step down on 1 July to make way for Hein Schumacher, former boss of the Dutch dairy company Royal Friesland Campina.

Three shareholder advisory firms called on investors to vote against the company’s remuneration policy at the annual meeting.

Pirc opposed the pay report, while Glass Lewis expressed concerns about the new boss’s £1.62 million base salary – some 18 per cent more than Jope was being paid.

Unilever has not given “convincing justification for the need for such a remuneration package,” it added.

Similarly, Institutional Shareholder Services said Schumacher’s base salary is “significantly higher than his current salary at Royal Friesland Campina and UK peers.”

Last week Unilever said sales in the first three months of the year were 10.5 percent higher than the same period a year earlier, at £13 billion, driven by a 10.7 percent increase in prices and a prices fall by 0.2 percent. the volume of goods sold.

In the fourth quarter of last year, prices increased by 13.3 percent and volumes decreased by 3.6 percent.