9th Oct 2018 08:15
LONDON (Alliance News) - Unilever PLC has been summoned to the UK parliament by the Business Select Committee on concerns of "excessive executive pay", the Daily Mail reported on Monday.
The Anglo-Dutch consumer goods manufacturer, which makes Ben & Jerry's ice cream and Lynx deodorant, will need to justify its pay policy at a hearing next Tuesday.
According to the newspaper Peter Newhouse, Unilever's executive vice-president for reward, will speak for the company.
The move comes after more than one third of Unilever's shareholders at the company's annual general meeting in May rebelled against plans to pay Chief Executive Paul Polman up to GBP12.7 million, the newspaper noted.
More recently, under pressure from UK shareholders, Unilever dropped its proposal to simplify the company's structure and move its headquarters to the Netherlands.
"Excessive executive pay undermines public trust in business," said Rachel Reeves, head of the committee, according to the Daily Mail. "Recent revolts on pay awards, including at Unilever, show that shareholders are increasingly sharing the frustration at unjustifiable pay awards."
Royal Mail PLC also has been called before parliament, after 70% of its shareholders voted against executive pay, with its remuneration committee chair, Orna Ni-Chionna, also appearing on Tuesday, the newspaper said.
The Daily Mail noted that Royal Mail's investors had objected to the "golden goodbye" worth a maximum of GBP2.7 million that is to be paid to departing chief Moya Greene, as well as to the "golden hello" of up to GBP6 million for successor Rico Back.
https://www.thisismoney.co.uk/money/markets/article-6253939/Unilever-slammed-fat-cat-pay-just-days-forced-ditch-plan-axe-UK-base.html
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