Unilever kicks off new plant in Ukraine, CEO's salary frozen amid fiscal caution
9:49 AM EDT, March 23, 2024
On Friday, the international company Unilever initiated the construction of a new plant in Biala Cerkiew, located in the Kyiv region. According to Interfax Ukraine, this project, with a budget of 20 million euros, is expected to generate nearly 100 new job opportunities.
The facility will manufacture personal hygiene products, including shampoos and shower gels, primarily for the Ukrainian market.
The site earmarked for this significant investment spans 4.2 hectares (approximately 10.4 acres). The factory, which will have an annual production capacity exceeding 5,000 tons, is slated for completion by the end of 2024.
- Choosing this specific location within the industrial park was strategic. It offers the essential transport and road infrastructure. Developing industrial parks plays a pivotal role in revitalizing the industry in the Kyiv region amidst the ongoing conflict between Russia and Ukraine, as noted by Ruslan Kravchenko, head of the Kyiv Regional State Administration, at the construction's inauguration.
He further highlighted, "The establishment of new manufacturing facilities augments local communities' income and well-being, boosts tax revenue, and fosters the growth of small and medium-sized enterprises in the area."
Salary freeze for CEO amid financial prudence
In a move reflecting financial prudence, Unilever, the parent company of renowned brands such as Dove, Knorr, Lipton, and AXE, announced that its supervisory board has resolved to keep CEO Hein Schumacher's fixed salary unchanged for the next two years at the end of last year.
This decision came after Schumacher's original compensation plan was disapproved by nearly 60 percent of shareholders in May. The board had suggested a contract for Schumacher that included a base salary of 1.85 million euros, marking a 20 percent raise from his predecessor Alan Jope's salary.
As reported by Reuters, Schumacher, who assumed the CEO role at Unilever in July 2023, will not receive any fixed salary hike in 2024 and 2025. His salary levels will be reevaluated in 2026 by the Remuneration Committee.
