Unilever Investors Reject Director Pay After Messy Year

Signage for Unilever Plc at the company's headquarters in Rotterdam, Netherlands, on Tuesday, Feb. 8, 2022. Unilever Chief Executive Officer Alan Jope is facing growing pressure to accelerate a revamp of the company as shareholder discontent gains ground in light of the failed bid to buy GlaxoSmithKline Plc's consumer-health unit.

(Bloomberg) -- Unilever Plc's shareholders voted down the company's 2022 remuneration report after a botched attempt to buy the consumer arm of drugmaker GSK Plc and years of lackluster share price performance.

Almost 60% of shareholders voted against Unilever's pay report at its annual general meeting in a poll. Some 17% also voted against reelecting Nils Andersen as chairman.

Although the votes are not binding, meaning pay awards to executives will 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%. His total remuneration is €5.4 million ($6 milllion). Jope delivered strong sales growth in 2022 but that was entirely the result of higher pricing and came at the expense of falling volumes and 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 dialogue with investors. The UK fund manager told his investors earlier this year that Unilever had ignored long-term shareholders while granting activist Nelson Peltz a seat on the board after he held shares for just a few months.

(Updates with share graph, additional information. A previous version corrected the spelling of chairman's name.)

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