Unilever Plc’s shareholders voted down the company’s 2022 remuneration report after a botched attempt to buy the consumer arm of pharma company GSK Plc and years of lackluster share price performance.
(Bloomberg) — Unilever Plc’s shareholders voted down the company’s 2022 remuneration report after a botched attempt to buy the consumer arm of pharma company GSK Plc and years of lackluster share price performance.
Almost 60% of shareholders voted against Unilever’s remuneration report at its annual general meeting in poll. Some 17% also voted against reelecting Nils Anderson as chairman.
Although the votes are not binding, meaning pay awards to executives will still be made. Still, they’re a rebuke to management at the maker of Dove soap which has long prided itself on its “purpose” and sustainable agenda.
Unilever’s board said it was “disappointed that the advisory vote” did not pass, adding that it would engage with shareholders over the next few months to listen carefully to feedback and determine any next steps.
Chief Executive Officer Alan Jope, widely criticized for his £50 billion ($62.8 billion) failed lunge at GSK’s consumer unit, has been awarded a bonus of 200% of fixed pay against a target of 150%. Jope delivered strong sales growth in 2022 but that was entirely down to higher pricing, with rising input input costs hitting profitability.
Hein Schumacher is set to succeed Jope as CEO in July and is expected to attempt to address grievances of shareholders about the company’s patchy operational performance and questionable strategic narrative.
Read more: New Unilever CEO to Spur Change at Company Laden With ‘Purpose’
Unilever has come under fire from investors like Terry Smith for failing to have a good dialog with investors. The UK fund manager told his investors earlier this year that Unilever had ignored long-term shareholders while granting activists such as Nelson Peltz a seat on the board after he held shares for just a few months.
(Updates with additional information throughout)
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