By Evans MomoduPublished 14:25Unilever shareholders are set to revolt at the AGM over new CEO Fernando Fernandez’s €1.8 million pay package. ISS recommends voting against executive compensation report.
Unilever, the FTSE-100 consumer goods powerhouse behind household brands like Marmite and Lynx, is facing mounting investor criticism over the €1.8 million salary awarded to its new CEO, Fernando Fernandez.
According to Sky News, influential proxy advisory firm ISS (Institutional Shareholder Services) has advised shareholders to vote against Unilever’s executive remuneration report during the upcoming Annual General Meeting (AGM) this month.
Sources familiar with the ISS report indicate the firm took issue with the minimal salary reduction offered to Fernandez compared to his predecessor. Despite stepping down after just two years, former CEO Hein Schumacher was earning a base salary of €1.85 million.
Fernandez, formerly Unilever’s Chief Financial Officer, has been awarded a salary just €50,000 lower—a 2.7% decrease—prompting shareholder discontent.
ISS noted that the company “has not adequately addressed previously raised shareholder concerns regarding the CEO’s pay structure,” adding that Fernandez’s salary remains “significant” and not sufficiently discounted in light of prior objections.
Unilever caught the financial community by surprise earlier this year when it announced Schumacher’s departure amid reported frustrations over the company's slow growth trajectory. Fernandez was swiftly promoted to CEO, a move that stirred conversations not just about strategic direction but also executive compensation.
With Unilever’s AGM approaching, the vote on executive pay is expected to be contentious. A negative outcome could put further pressure on the board to revise its approach to executive salaries, particularly due to ongoing scrutiny from investors who are increasingly vocal about pay transparency and performance alignment.
Source:
Sky News.
