New Unilever boss handed £763k to move house as big firms boost packages to attract top talent
THE new boss of UNILEVER is being given £763,000 to move house, The Sun can reveal.
Fernando Fernandez will rake in the record “relocation benefits” of any top brass at British-listed companies.
The Argentinian, who is switching from New York to the UK, was promoted from being the firm’s £1million finance chief to the top job last month in a shock move that saw Hein Schumacher ousted as CEO after less than two years.
Consumer goods giant Unilever, the FTSE 100-listed Magnums and Marmite maker, has already revealed that he is set to receive a basic salary of £1.5million.
He will also be in line for other perks including an annual bonus worth up to 225 per cent of his pay, equivalent to £3.3million.
And he qualifies for a share plan worth up to a whopping 400 per cent of his salary — which could work out at an extra £6million, conditional on his performance.
Unilever’s annual report sheds light on the growing trend for handing over huge sums to bosses to encourage them to move.
It reveals Mr Fernandez has already been handed £553,000 to relocate and will receive a further £210,000 for his move in the next year. He is also entitled to housing costs for up to six months.
Such “cost of living adjustment” perks are becoming more popular as firms try to swell executive pay to match US rivals.
Tesco caused shareholder fury eight years ago when it handed former boss Dave Lewis £142,000 to relocate 25 miles from London to Welwyn Garden City, Herts.
AG Barr boss Euan Sutherland also raised eyebrows last year when bagging a £130,000 relocation package to buy a home nearer to the Irn Bru maker’s Scottish HQ.
Shell boss Wael Sawan landed £334,778 when moving from America to headquarters in London.
Over in the US, coffee giant Starbucks allowed its new boss Brian Niccol a stonking £192,000 private jet allowance for his “super commute” to Seattle from his home in California.
And Nicandro Durante received a hefty £199,346 when moving from the US to London to take the top job at Dettol maker Reckitt.
Russ Mould, analyst at AJ Bell, told Sun Business: “Companies are always looking to attract and retain the best talent. Pay is one way of doing this. But there are others, such as bonuses, stock options and relocation packages.
“Unilever clearly felt it wanted to get the right person in place as swiftly as possible. It is up to Mr Fernandez and Unilever to prove he is worth his package by getting the firm to show improved financial and share price performance.”
David Jackson, managing partner at headhunter firm Stone Executive, said: “Relocation packages or covering housing costs are becoming increasingly popular as a way of firms being able to secure the international talent they want.”
Six diving in to the Thames
THAMES WATER has revealed it has received takeover bids from six suitors and hopes to clinch a restructuring deal by September.
The troubled utility company, which this week won a legal battle for a £3billion loan from bondholders, is “conducting a detailed assessment” of the proposals. Without the loan, it faced running out of cash by the end of March.
Bidders are understood to include Castle Water, KKR and CK Hutchison, which already owns a big stake in Northumbrian Water.
The disclosure came as Thames said it had postponed its appeal on how much it can raise bills by 18 weeks.
Regulator Ofwat yesterday said a record five firms had referred its price review to the competition watchdog.
Anglian Water, Northumbrian, South East, Southern and Wessex Water want to raise bills by more than allowed.
Charge..! On Tesla
ELON Musk’s Tesla is facing a fresh threat after a Chinese rival claimed its new vehicle can be charged as quickly as it takes to fill a car with petrol.
BYD says it can charge a range of 250 miles in just five minutes. Tesla’s Superchargers take 15 minutes.
Shares in Musk’s electric car firm have tumbled by more than third in the past month amid fears his closeness to US president Donald Trump has sparked a sales slump, particularly in China and Europe.
Pawn is boosted by gold
BRITAIN’S biggest pawnbroker has been boosted as cash-strapped customers sell their jewellery to take advantage of soaring gold prices.
H&T Group yesterday reported that profits have jumped by 10 per cent to £29.1million in the past year.
The firm, which has 285 shops, said it had seen strong demand due to the “limited alternatives” for individuals needing to borrow small sums of money for the short term.
Gold prices have hit record highs of $3,000 (£2,300) an ounce, leading to more people taking their broken chains and old bracelets to pawnshops to take advantage of their increased worth.
The increasing cost of jewellery is also prompting more to turn to second-hand items to save cash.
Chris Gillespie, H&T chief executive, said the group was “well positioned for significant growth in the medium term”.
MORE than 600 shops and 5,000 jobs will be put at risk by business rate rises, says High Streets UK.
The group reckons government plans to hit costlier properties will see 200 permanent closures on “flagship high streets”.
Car loan giant in £103m hit
SPECIALIST motoring lender Close Brothers has swung into a £103million loss after putting £165million aside to cover potential compensation payments in the car finance scandal.
The firm is Britain’s biggest motoring finance provider and has been heavily hit by a landmark ruling from October last year.
Judges declared it unlawful for car dealers to have received commission on motor finance from lenders without a driver’s knowledge.
Close Brothers is also paying a further £10million in adviser and legal fees dealing with the fallout of potential misselling of car finance deals.
The case is due to be heard in the Supreme Court next month.