Unilever CEO’s Pay Frozen Until 2026 Amidst Shareholder Frustration

Unilever CEO's Pay Remains Unchanged for Next 2 Years After Shareholder Backlash

Unilever CEO to go without pay raise for 2 years following shareholder uproar.

Unilever’s CEO, Hein “Mr. Freeze” Schumacher, won’t be seeing a pay rise until 2026, and shareholders are putting the “chill” on his base salary of $1.96 million, according to Bloomberg¹.

You see, at Unilever’s annual general meeting in May, the board’s proposed pay package was met with a resounding “no” from the shareholders². And now, Schumacher’s frozen in his tracks, as his base salary of 1.85 million euros ($1.96 million) won’t be thawed out for two long years³. That’s probably not what he expected when he took over as CEO from Alan Jope in July. Schumacher’s base salary represents a nearly 20% increase from Jope’s fixed pay, which was 1.56 million euros ($1.65 million) in 2022⁴.

But who are these shareholders that are giving Mr. Freeze such a cold reception? Well, nearly 60% of them voted against the deal put forward by the Unilever board⁵. Nelson Peltz, an activist investor, is among those who voiced their discontent⁶. Looks like Schumacher’s pay got caught in a “snowstorm” of opposition.

Unilever, wanting to get the temperature back to a more manageable level, held numerous meetings with their top shareholders to discuss the vote⁷. And it seems that the feedback they received convinced them to hit the pause button on Schumacher’s pay increase. As a result, his frozen salary won’t budge in 2024 or 2025, and it will only be reviewed by a compensation committee in 2026⁸.

But that’s not the only recent development in Unilever’s frozen tundra. Schumacher recently made a strategic shift in the company’s approach to branding⁹. Under Jope, Unilever focused on brands with a social purpose, but Schumacher has changed tact¹⁰. No longer will the company sell off brands just because they can’t stand for something more important than shiny hair and soft skin¹¹. It seems like Schumacher wants to melt away the shareholder backlash and bring a warmer reception to Unilever’s brands.

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When reached for comment, Unilever declined to break the ice with any additional remarks¹². Perhaps they’re waiting for the shareholders to thaw out before shedding more “light” on the situation.

So there you have it, Unilever’s CEO finds himself in the midst of an icy showdown with shareholders, leaving his pay frozen until 2026. Will this “cold shoulder” have a chilling effect on the company’s future? Only time will tell.

Readers, what are your thoughts on this frozen showdown between Unilever’s CEO and shareholders? Share your comments and let’s heat up the discussion!