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Reckitt Benckiser cuts boss’s pay for second time | |
(about 1 hour later) | |
Reckitt Benckiser, the maker of Durex condoms and Gaviscon, has cut its chief executive's pay package for the second time in two years. | Reckitt Benckiser, the maker of Durex condoms and Gaviscon, has cut its chief executive's pay package for the second time in two years. |
Rakesh Kapoor received total compensation of £12.5m in 2017, down from £15.3m in 2016, after the firm underperformed. | Rakesh Kapoor received total compensation of £12.5m in 2017, down from £15.3m in 2016, after the firm underperformed. |
Without the reduction for 2017, he would have received £23.7m. | Without the reduction for 2017, he would have received £23.7m. |
Reckitt Benckiser has previously been accused of having excessive pay levels. | Reckitt Benckiser has previously been accused of having excessive pay levels. |
According to Reckitt, Mr Kapoor volunteered to take the cut "based on the [remuneration] committee's evaluation of performance in the round and alignment of pay outcomes with the shareholder experience." | According to Reckitt, Mr Kapoor volunteered to take the cut "based on the [remuneration] committee's evaluation of performance in the round and alignment of pay outcomes with the shareholder experience." |
"We recognised that 2017 was a challenging year," said Mary Harris, chair of the remuneration committee. | "We recognised that 2017 was a challenging year," said Mary Harris, chair of the remuneration committee. |
It follows a slowdown at the consumer goods company, whose shares have fallen more than 25% this year. Sales were flat in 2017 due to pricing pressures and one-off events, including a major cyber attack. | It follows a slowdown at the consumer goods company, whose shares have fallen more than 25% this year. Sales were flat in 2017 due to pricing pressures and one-off events, including a major cyber attack. |
Complaints | Complaints |
Mr Kapoor's 2016 package was itself slashed by 39% after a safety scandal that engulfed its South Korean division. | Mr Kapoor's 2016 package was itself slashed by 39% after a safety scandal that engulfed its South Korean division. |
And even the year before, 2015, there had been complaints about his £25.5m salary, which made him Britain's third-highest paid boss. | And even the year before, 2015, there had been complaints about his £25.5m salary, which made him Britain's third-highest paid boss. |
According to the High Pay Centre think tank, the average chief executive pay at a FTSE 100 company was £4.5m in 2016. Figures for 2017 have not yet been released. | According to the High Pay Centre think tank, the average chief executive pay at a FTSE 100 company was £4.5m in 2016. Figures for 2017 have not yet been released. |
With a market value of £59bn, Reckitt Benckiser is the 15th biggest company in the FTSE 100 index. | With a market value of £59bn, Reckitt Benckiser is the 15th biggest company in the FTSE 100 index. |
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