Unilever to freeze CEO’s salary for next two years after shareholder revolt

It comes after 58 per cent of shareholder votes were cast against the group’s pay deals for directors at its annual general meeting in May.

Mr Schumacher, who took over at the helm in July, inherited one of the best paid chief executive roles in the FTSE 100 with an annual salary of 1.85 million euros (£1.62m) as well as potential bonus and long-term incentive shares.

The decision on Monday means he will not have his fixed pay level reviewed until 2026.

Previous chief executive Alan Jope was handed 5.4 million euros (£4.7m) last year, including a 3.7 million euro (£3.2m) bonus, under the remuneration deal.

Unilever said it had spoken to shareholders and found that the “primary reason” for votes against the directors’ pay was “the approach taken to setting the incoming CEO’s (chief executive officer’s) remuneration on appointment”.

“Specifically, whilst the majority of shareholders agreed that the fixed pay level for the new CEO appropriately reflected the size and complexity of the role, there was a preference that alignment with the market could have been achieved gradually, rather than in one step on appointment,” it said.

Unilever also said it had started discussions with shareholders over the renewal of its remuneration policy in 2024, adding that the feedback so far had been “valuable” and will help shape final proposals.

Last week, Mr Schumacher said the consumer goods giant’s performance in recent years has “not matched our potential”.

Unilever revealed it was launching an “action plan” to drive growth, involving focusing on its 30 most profitable brands.