DIAGEO’s Ivan Menezes received a £7.8 million pay package in his first year as chief executive of the drinks giant, although it was almost £500,000 less than he picked up in his previous role as chief operating officer.
Menezes and the other executive directors received less than 10 per cent of the potential bonuses available during the year after weakness in emerging market economies hit growth.
Menezes received a £933,000 salary and together with a £366,000 payment to relocate to the UK and pension his non-performance related pay totalled £1.8m. He also received a £170,000 annual bonus and just over £3m in long-term incentive payments, together with £2.75m under long-term plans related to his previous role.
Menezes’ basic salary is to be frozen this year after “careful consideration” by the remuneration committee of his total package and also of the salary budget for UK employees, which is seeing average increases of 2.8 per cent.
Finance director Deirdre Mahlan received a £3.8m package during the year, although it was well down on the more than £7m she received in 2012 when she pocketed in excess of £5m in long-term incentive payouts.
The group’s annual report also shows that former chief executive Paul Walsh, who stepped down from the board in September, received more than £6m in long-term incentives during the part of the year he served. It takes the total he received in his final two years at the firm to more than £21m.