Charity pulled into row over Unilever’s HQ

A charity set up by the founder of Unilever and run by bigwigs with strong ties to the company could be crucial in its decision to ditch Britain.

The Leverhulme Trust was launched with an endowment from William Lever when he died in 1925, and is one of Unilever’s biggest British shareholders with a stake of almost 6pc worth £2.8bn.

This means the trust will play a key role in determining whether Unilever’s British headquarters is axed in a vote next month.

A string of high- profile shareholders have already warned against Unilever’s plans to base itself solely in the Netherlands amid a growing City backlash.

But the trust, whose directors include Unilever chief executive Paul Polman, the driving force behind plans to ditch the UK headquarters, is widely expected to back the move. It sets the scene for a knife-edge vote by Unilever investors next month.

The charity, which gives out grants for vital academic research, is likely to face accusations of a conflict of interest over its long-standing ties to Unilever and financial dependence on the company. one City insider said: ‘You could question their impartiality, because the Leverhulme Trust is only going to vote one way.

‘There’s no doubt they have the right to vote legally, but it’s fair to ask if they should do so on ethical grounds.’

The trust has to recruit most of its board members from Unilever as part of the conditions under which it was set up. Nine of its 11strong board are current or former top Unilever staff including Polman, his predecessor Patrick Cescau and former chairman and chief executive Niall Fitzgerald.

of the remaining two board members, lawyer Christopher Saul was senior partner at Slaughter and May and acted for Unilever throughout his career. It is understood Polman, paid more than £10m last year, will play no part in the decision on how to vote.

The Leverhulme Trust earned 84pc of its income, or £83.4m, from dividends it was paid by Unilever in 2017, meaning that if the move to the Netherlands impacts upon Unilever’s profits, the good causes it supports may suffer.

So far major shareholders including Columbia Threadneedle, Lindsell Train, Aviva Investors and M&G Investments have raised concerns over the relocation plan.

Another household name, Standard Life Aberdeen, is expected to let its individual fund managers make up their own minds on the issue, with many expected to oppose the relocation. The trust declined to comment last night.

Unilever shares rose 1.4pc, or 58p, to 4202.5p.