While drinks industry groups voiced disapproval of the remuneration packages paid to Diageo executives, shareholders have shown their support for the move at its recent AGM.
Last week, Pirc - the hareholder corporate governance body - hit out at the bonuses, saying they were being excessive. However, early results indicated that 97% of voters backed the drink giant's pay rates for the past year and pay policy for the coming years.
Lord Davies, chairman of Diageo’s remuneration committee, has defended the pay schemes. The Scotsman reported how Davies said at the meeting, “We have had overwhelming support [for the remuneration policy and report] from our shareholders.”
“We are competitive. We are not overpaying. We did not pay big bonuses because the performance was not there.”
Diageo chief executive Ivan Menezes received £7.7 million in pay and bonuses in the year 2013/2014 while his basic salary was £933,000.
Meanwhile, finance director Deirdre Mahlan received £3.7 million compared to a basic salary of £706,000.
Diageo's net sales decreased by £1.1 billion, according financials posted for the year 2013/2014.
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