Diageo paid former boss £15m in his final year


Paul Walsh, the former boss of drinks company Diageo, is to be paid £80,000 a year to continue to represent his former employer in the Scotch whisky industry after receiving almost £15m in cash and long-term bonuses from the company in its most recent financial year.

Walsh, now incoming chairman of the contract caterer Compass, stepped down as chief executive in June after 13 years and will keep around 1m share options that could pay out millions of pounds in the years ahead, according to the company's annual report. The number of options will not be reduced to take account of his retirement, when he left the company with a near £18m pension pot.

The annual report also revealed an unspecified number of senior managers at the company made a total of £56.7m from cashing in share options during the year.

It provided the total of £14.7m for Walsh's pay in 2013 – to comply with new guidelines to provide a single figure for an executive's pay. This includes £1.3m of salary and benefits, an annual bonus of £1.2m with the remainder comprising long-term bonuses.

Another figure of £16.1m was provided to cover all the options and long-term incentive plans which paid out to him during the financial year when ended in June but much of this total will be contained in the single figure provided by the company.

Although Walsh has already left Diageo, he will remain employed until June next year to "ensure an efficient and comprehensive transition" to his replacement Ivan Menezes, who will have a salary of £1m. Walsh will represent Diageo at the Scottish Whisky Association for up to five years.

The company said 83% of Walsh's £14.7m total pay was based on the share price. The value of the company has risen from £20bn to £47bn between 2010 and 2013.

Powered by Guardian.co.ukThis article was written by Jill Treanor, for theguardian.com on Monday 12th August 2013 22.22 Europe/London

guardian.co.uk © Guardian News and Media Limited 2010


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