Unilever faces fierce investor backlash over new CEO's pay package
- Unilever's new CEO, Fernando Fernandez, is facing significant investor pushback over his €1.8 million salary, which is only slightly lower than his predecessor's.
- Leading proxy adviser ISS has advised shareholders to vote against the company's remuneration report, criticizing the lack of adequate adjustments to the CEO's pay.
- This backlash reflects broader concerns about Unilever's governance and pay practices, which may influence investor confidence moving forward.
In April 2025, Unilever, a major consumer goods corporation based in the UK, has come under scrutiny from investors regarding the remuneration of its new CEO, Fernando Fernandez. Following the departure of Hein Schumacher after a brief tenure of two years, Unilever announced that Fernandez, who previously served as the chief financial officer, would be compensated with a base salary of €1.8 million. This amount, while lower than Schumacher's previous salary of €1.85 million, has not alleviated concerns among shareholders. ISS, a leading proxy advisory firm, has publicly recommended that shareholders reject the company's remuneration report during the upcoming annual meeting, signaling substantial dissent towards Unilever’s pay practices. ISS's objections highlight that the slight adjustment in Fernandez's salary does not sufficiently address previously raised concerns from shareholders about the overall pay arrangements for the CEO role. Moreover, Unilever's decision to disapply time pro-rating regarding former executives' long-term share awards could have resulted in smaller stocks being awarded than what was actually granted, raising further questions about the company's governance and financial management. As of now, Unilever's share prices have been impacted, trading at approximately £44.79, which positions the company’s valuation around £115 billion. The investor reaction will be closely monitored, particularly during the upcoming annual general meeting, where the final vote on the remuneration report will take place, potentially setting a precedent for how executive pay is managed within the company moving forward. The ongoing backlash may indicate deeper issues within Unilever’s leadership and its ability to align executive compensation with shareholder interests, which could pose long-term challenges for the company's governance and reputation in the market.