Durex maker Reckitt Benckiser (RB) has been thrust back to the centre of the row on excessive executive pay after it revealed its CEO picked up a pay package worth £23.2m last year.
Rakesh Kapoor’s pay award rose from £12.8m in 2014 to £23.2m in 2015 after his long-term share incentive plan awards increased to £18.2m.
RB’s compound annual growth of 8.1% between 2013 and 2015 meant Kapoor received 80% of his possible share options, which more than doubled his £8.9m share award from last year. About two-thirds of the value of the vesting shares is due to share price growth.
His annual bonus, meanwhile, rose by over 40% to £3.8m and his base salary grew 3% to £891k during the year.
Last year, Kapoor was the seventh-best paid boss in the FTSE 100, but his most recent pay award would put him second only to WPP CEO Martin Sorrell, based on last year’s figures.
More than 17% of shareholders voted against RB’s remuneration report last year. Kapoor’s award was criticised by the High Pay Centre, and several shareholders predicted Reckitt may face a backlash from investors.