U.K. distiller cuts CEO’s pay by $1.4M
LONDON — Diageo PLC cut the pay of its two top executives after the distiller missed performance targets, joining other U.K. companies in reining in management awards amid political and investor calls for restraint.
The London-based company cut the variable portion of Chief Executive Officer Ivan Menezes’ compensation by 35 percent, reducing his total pay for the latest financial year to $4.4 million from $5.8 million a year earlier. That part of Chief Financial Officer Kathy Mikells’ package was reduced by half, the company said in its annual report published Tuesday.
Menezes and Mikells are the latest of a number of U.K. executives whose pay has been cut after Prime Minister Theresa May decried the “irrational, unhealthy and growing gap” between the compensation of managers and ordinary workers. Bosses of companies in the Financial Times Stock Exchange 100 Index made an average of $5.84 million last year, down 17 percent from 2015, according to the High Pay Center.