Conglomerate freezes CEO's salary for two years
Unilever, the parent company of brands such as Dove, Knorr, Lipton, and AXE, announced that the supervisory board has resolved to freeze the fixed salary of CEO Hein Schumacher for the next two years, according to Reuters.
11:51 AM EDT, November 3, 2023
This decision to halt salary increases came after Schumacher's initial wage package was disapproved by shareholders in May, with nearly 60% of the votes against it.
As reported by Reuters, the board proposed a contract for the CEO that featured a basic salary of 1.85 million euros (approximately $2.09 million), signifying a 20 percent surge in comparison to the salary of his predecessor Alan Jope.
This resolution followed a total of 37 meetings with 24 key shareholders.
"A majority of shareholders agreed that the fixed level of remuneration for the new CEO suitably reflects the size and complexity of the role. However, there was a consensus that the market adjustment could be implemented incrementally, instead of in a single leap upon appointment," - the company stated in its declaration.
Reuters reported that Schumacher, who assumed the role of CEO of Unilever in July, will not qualify for a permanent salary increase in 2024 and 2025. The Remuneration Commission will reassess his fixed salary level in 2026.
