Diageo cuts bosses bonuses

Diageo has revealed their top executives are to take a hit on bonuses following a poor performance over the last fiscal year.

Diageo CEO Ivan Menezes has seen his bonuses drop

Diageo CEO Ivan Menezes, along with other executive directors including his predecessor Paul Walsh and CFO Deirdre Mahlan, took home less than 10% of their possible bonuses for the 2014 fiscal year following the company’s mediocre performance, according to the Scotsman.

Menezes took home a pay package worth £7.8 million in his first year as CEO of the drinks giant, £500,000 less than what he picked up in his previous role as chief operating officer.

The new CEO’s package consisted of a £933,000 salary and a £336,000 relocation allowance which together made up the bulk of his non-performance related pay totalling £1.8m.

On top of this he received a £170,000 annual bonus and a little over £3m in long term incentive payments as well as £2.75m related to his previous role.

However, following a drop in net sales of £1.1 billion as reported by the drinks business, Menezes’ basic salary is to be frozen this year following “careful consideration” by Diageo’s remuneration committee.

Among other key executives, finance director Deirdre Mahlan received a £3.8m package, well below the £7m package she received in 2012 after the payout of long term incentives.