UK: Paul Walsh handed five-year Diageo whisky role

By | 13 August 2013

Diageos CFO saw her pay packet double

Diageo's CFO saw her pay packet double

Ex-Diageo CEO Paul Walsh is to stay with the company for up to another five years to promote the company's Scotch whisky interests.

Walsh, who stepped down from the group as CEO last month, will be “retained in a role with the Scotch whisky industry on behalf of Diageo”, according to the company's annual report, released yesterday (12 August). The former CEO, who is also staying on to assist replacement Ivan Menezes for a year, will be paid GBP80,000 (US$123,700) annually “for a period of up to five years” for the role, the report said.

Walsh, who is joining catering group Compass as chairman next year, was paid GBP14.8m in his final year of work, a 30% increase on the year before, the report revealed. 

The rise came from a surging Diageo share price that saw performance-related incentive plans boost Walsh's basic salary by ten-fold, despite a 32% drop in annual bonus. Diageo CFO Deirdre Mahlan, meanwhile, saw her pay increase by 110%.

Walsh earned GBP1.3m in fixed pay for the 12 months ended 30 June, the report said. However, 83% of his total pay is in incentives linked to Diageo's share price, which has risen by 80% over the past three years.

Mahlan also benefited from the share price jump, earning a total GBP6.7m despite a 29% decrease in annual bonus. New CEO Menezes next year will get a basic salary of GBP1m. 

In 2007, Diageo was forced to defend Walsh's take-home pay of GBP5.1m after a UK trade union official branded it “morally offensive”.

Expert analysis

Diageo plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage.

Sectors: Beer & cider, HR – personnel, Spirits, Wine

Companies: Diageo

View next/previous articles

Currently reading -

UK: Paul Walsh handed five-year Diageo whisky role

There are currently no comments on this article

Be the first to comment on this article

Related research

Diageo plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....

Diageo Plc in Spirits (World)

Since the great recession of 2008/2009 Diageo has transformed itself, primarily through acquisition, from being overly focused on mature markets to a more balanced geographic split and if, as seems likely it gains control of UB Group’s United Spirits...

Diageo Plc in Wine (World)

The world’s leading spirits producer, Diageo also ranks 23rd in the global wine market. This profile analyses the role of wine in the company’s wide-ranging alcoholic drinks operations, considering opportunities to address its weaknesses and adapt it...

Related articles

Research in Focus - Vodka and the Flavour Fatigue

The flavoured vodka category has been a growth engine of the spirits sector for some time, but new research from just-drinks suggests that the sub-category no longer represents the easy route to growth or the obvious 'go to' option for new product development that it did a few years ago.

just the Round-Up - The week in drinks

The top ten stories published on just-drinks this week:

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page