The food and hygiene products giant Unilever announced on Monday that it will freeze the fixed part of the salary of its new CEO, Hein Schumacher, for two years, following the rejection last May by its shareholders of the remuneration plan for the employees. group directors.
Unilever, which is going through a period of turbulence, assures in a statement that it has “undertaken an extensive exercise” of dialogue with its shareholders to understand the reasons for this rejection, which occurred before Hein Schumacher took office on July 1.
The fixed part of Hein Schumacher’s salary has been set at €1.85 million per year, an increase of more than 18% compared to his predecessor Alan Jope.
The compensation plan rejected by 60%
In May, before the arrival of Hein Schumacher, Unilever shareholders had rejected the group’s executive remuneration plan by almost 60%, following an advisory vote during its annual general meeting.
It was a wake-up call for management, as the strategy of previous CEO Alan Jope, at the helm of Unilever since 2019, had been questioned for months by influential investors.
Alan Jope was especially criticized after the failure of his planned acquisition, at great expense, of the health products division of the GSK laboratory, which provoked protests from the main shareholders, forcing him to back down.
Unilever, known for Dove soaps, Ax deodorants, Knorr soups and Magnum ice creams, presented on Thursday a new “recovery plan” after the drop in its turnover in the third quarter, focused on “faster growth, a greater productivity and simplicity, and a stronger performance culture.”
“Our performance in recent years did not live up to our potential,” lamented Hein Schumacher.
Source: BFM TV
