The CEO of Diageo saw his salary fall by almost 50% in the company's most recent financial year, due in part to what the group described as "very stretching" targets.
In the firm's annual report, released yesterday, Ivan Menezes' pay for the 12 months to the end of June was US$6.2m, with his fixed pay coming in at $2.5m. In the year-prior, Menezes earned $12m, with his fixed pay totalling $2.9m.
In results for the 12-month period, released in late-July. Diageo reported flat organic net sales on a 1% dip in volumes.
In yesterday's report, Mervyn Davies, chairman of the group's remuneration committee, said: "As a reflection of the company’s performance against very stretching performance targets in the context of challenging market conditions, total variable pay to the executive directors in respect of the year ended 30 June 2015 is lower than in respect of the year ended 30 June 2014."
Menezes maintains, however, that the " fundamentals for future growth remain strong".
"Diageo will benefit from the increasing penetration of spirits in emerging markets, innovation and the growing appetite for luxury spirits around the world," he wrote in the report.
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By GlobalDataCFO Deirdre Mahlan, who is moving to head up North American operations later this year, also saw her full-year salary fall, by 35% to GBP2.4m (US$3.7m).
To access Diageo's annual report, click here.
