Diageo investors in protest vote over "excessive" executive pay outs

By Erin Smith

Published: 16 September, 2013

Shareholders and investors in the drinks giant, Diageo, are to vote later this week on what they claim is an "excessive" level of payout for former chief executive, Paul Walsh.

On Thursday, September 19 investors will be asked to vote on a remuneration report, which recommends paying £18.2 million to its former ceo, Paul Walsh. The report also is proposing £1?million pay for his replacement Ivan Menezes, who started in July. Menezes will be eligible for shares and bonuses that could bring his pay to £9?million.

The advisory firm Manifest is reported in the financial press of accusing Diageo of "excessive" levels of incentive pay and poor annual bonus target disclosures. It has also accused the company, which has a market value £47 billion, for intentionally setting weak performance targets.

A representative of Manifest believes it was likely some investors would vote against the compensation package.

Diageo PLC closed on September 13 at 2001.00 on the FTSE and has been trading up all day today at over 1%.

Printer friendly version