Diageo shareholders urged to vote against pay report - Sky

(Sharecast News) - Drinks giant Diageo is facing a potential investor backlash over pay, it was reported on Thursday. Proxy adviser Glass Lewis has called on shareholders in the blue chip to oppose the pay report at next month's annual general meeting, because of nearly £8.5m in stock awards handed to Nik Jhangiani.

Previously finance chief, Jhangiani was made interim chief executive in July after former incumbent Debra Crew was ousted. He is widely-seen as the front runner to take over the role permanently.

However, according to Sky News, Glass Lewis has told investors: "Given the significant quantum of the awards, approximately £8.48m, we believe that shareholders may reasonably expected greater clarification as to the determination of the conditions associated with such awards.

"In the absent of a cogent rationale as to the non-performance-based nature of the majority of awards, we believe this issue precludes shareholder support for this proposal."

A Diageo spokesperson told Sky: "The recruitment arrangement was predominantly made in shares and was to compensate Nik for what he forfeited from his previous employer upon joining Diageo.

"When determining the structure and value of a recruitment arrangement, the remuneration committee looks to ensure that any such compensation has a fair value, no higher than that of awards forfeited."

Jhangiani joined Diageo in September 2023.

The owner of Guinness and Johnnie Walker, among many others, has endured a turbulent couple of years, including a profit warning, falling alcohol sales and an underperforming share price.

It is due to hold the AGM on 6 November.