Consumer goods giant Unilever on Monday announced a two-year freeze on the fixed salary of its new CEO, Hein Schumacher, following shareholders’ rejection of a remuneration plan for the company’s leaders.
Unilever stated in a release that it had initiated broad discussions with shareholders to understand the rejection, which occurred prior to Schumacher taking up his role in July.
The company noted that the majority of shareholders felt the new CEO’s fixed pay level correctly reflected the complexities of the role, but favoured a phased market alignment, rather than a one-time implementation upon appointment.
Schumacher’s fixed salary was set at €1.85 million a year, marking an increase of over 18% compared to his predecessor, Alan Jope.
In May, just before Schumacher’s arrival, Unilever’s shareholders rejected the remuneration plan for its executives by nearly 60% in a consultative vote at their annual general meeting.
This represented a wake-up call for management, as the strategy of earlier CEO Jope, who had been leading Unilever since 2019, had been under scrutiny for months by influential investors.
Unilever, known for Dove soaps, Axe deodorants, Knorr soups and Magnum ice creams, unveiled a revival plan on Thursday. This followed a third-quarter drop in sales, focusing on “quicker growth, higher productivity and simplicity, and a stronger performance culture.”
