A Unilever (LON:ULVR) executive has defended the company’s executive pay policy, while noting that the consumer goods company had learned lessons from the opposition which the policy attracted earlier this year, Reuters has reported. The comments come ahead of the group’s results on Thursday when the Anglo-Dutch company’s bosses will face investors for the first time since the failed attempt to move the company’s headquarters from London to Rotterdam.
Unilever’s share price has climbed higher in London in today’s trading, having gained 0.76 percent to 4,034.00p as of 13:48 BST. The group’s shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent higher at 7,035.91 points.
Unilever executive faces MPs over pay policy
Reuters reported today that Peter Newhouse, executive vice president for reward at Unilever, had told the British parliament’s Business, Energy and Industrial Strategy Committee that the company was engaging with shareholders and planning meetings for the second half of the month, following the opposition to its pay policy. In May, more than a third of the company’s shareholders rejected its pay policy, opposing a move to a consolidated ‘fixed pay’ structure.
Newhouse was a witness as part of the committee’s inquiry on executive pay and measures aimed at tackling excessive boardroom pay awards. Orna Ni-Chionna, chair of Royal Mail’s (LON:RMG) remuneration committee, also appeared as a witness.
Group to engage more with investors
Newhouse further told MPs that Unilever will discuss with shareholders its failed relocation plan in coming weeks. The company scrapped its proposal to abandon its dual-headed structure following severe opposition from investors.
When asked if the Anglo-Dutch group had a good record of engaging with shareholders, Newhouse replied that ‘everybody could improve,’ as quoted by Reuters.