Unilever chief government’s pay jumps 42 per cent

Unilever handed chief government Alan Jope a 42 per cent pay rise final yr to virtually £5mn after the corporate exceeded progress targets, partly due to value rises on its merchandise made in response to inflation.

Information of the rise in his pay packet comes as Unilever faces strain from shareholders over its languishing share value and a failed £50bn bid for GlaxoSmithKline’s shopper well being unit late final yr.

Jope’s whole remuneration rose to £4.9mn in money and shares in 2021 from £3.4mn the earlier yr after his bonus funds jumped sharply, based on Unilever’s annual report launched on Wednesday.

This was partly on account of underlying gross sales progress — a key metric for shopper items firms — of 4.5 per cent, up from 1.9 per cent the earlier yr.

The expansion determine, which beat an organization goal of three.5 per cent, was pushed by greater costs: pricing contributed progress of two.9 per cent on the maker of Magnum ice cream, Domestos bleach and Dove cleaning soap.

Andrea Jung, chair of Unilever’s compensation committee, mentioned in a notice to shareholders that the group’s remuneration committee had determined “after cautious consideration . . . to not change the targets in response to unstable enterprise circumstances, nor to train discretion on the formulaic final result, which can set the worldwide bonus pool for all eligible Unilever workers”.

She added: “Our resolution to not amend targets mid-year in mild of great inflationary circumstances was taken to make sure that workers and government administrators are handled commensurately with the pursuits of our shareholders.”

Jope’s greater pay packet, made up of £1.5mn mounted pay and the remaining bonuses, was 70 instances the pay of the median Unilever UK worker, up from 55 instances a yr earlier.

Nevertheless it was dwarfed by these acquired by his predecessor Paul Polman, who was paid a complete of £11.7mn in 2018, his final yr within the publish, and an identical determine in 2017.

Graeme Pitkethly, chief monetary officer, acquired a 16 per cent pay rise to £3.4mn for 2021.

Unilever’s share value was down 10.2 per cent to £39.46 throughout the yr.

Jope and Pitkethly’s annual bonuses, partly paid out as deferred share awards, are based mostly on firm efficiency in opposition to targets that embody underlying gross sales progress, free money circulate and underlying working margin, the place the group underperformed in 2021.

An extended-term administration co-investment plan is predicated on related elements over three years, plus a sustainability measure.

Jung acknowledged that “2021 was a yr of volatility with continued influence from the Covid-19 pandemic and unprecedented international commodity inflation pushed by provide constraints and demand spikes”.

Unilever confronted criticism from some analysts forward of its 2021 annual assembly for proposing modifications to its remuneration coverage that James Edwardes Jones, analyst at RBC Capital Markets, on the time mentioned would “profit Unilever’s senior executives on the expense of shareholders”.

They included targets for the proportion of the enterprise that’s gaining market share, which he mentioned had been set at “undemanding ranges”. However the modifications had been voted by by 93.5 per cent of shareholders.