Unilever warns of executive pay challenges in the US market

Unilever has issued a warning regarding the complications posed by the United Kingdom’s executive pay regulations and onerous shareholder requirements. The company, known for its brands such as Marmite and Hellmann’s mayonnaise, is finding it increasingly difficult to recruit senior talent from the United States.

According to Susan Kilsby, chair of Unilever’s remuneration committee, the restrictive governance framework in the UK limits the company’s capacity to offer competitive compensation packages to American executives. This is particularly significant, as the pay structures in the US are generally much higher and face fewer constraints.

Unilever has reported multiple instances where American candidates could not be hired, as their existing pay packages significantly exceed what Unilever can offer under its current framework. Kilsby noted that the restrictions mean that the company cannot compete effectively for top talent on a global scale.

The report highlights that Unilever currently lacks US-based members on its top executive team, with only 7 per cent of the next tier of leadership located in America. The firm plans to recruit between 20 and 30 executives across its three most senior management tiers in the US as it gears up to revise its remuneration policy.

The US market has become crucial for Unilever, contributing approximately 32 per cent to group revenues, a figure expected to rise to about 45 per cent in the medium term. The company aims to secure shareholder backing for changes to its remuneration policy, which is set to be reviewed ahead of the typical three-year cycle.

In 2025, CEO Fernando Fernández received total compensation of about €5.6 million, including a bonus of €1.75 million. Should key targets be met, Fernández’s pay could increase to approximately €10 million in 2026, with the potential for a maximum of €23.8 million under more ambitious conditions.

A spokesperson for Unilever indicated that the proposed policy changes aim to better align executive remuneration with performance while enhancing the company’s ability to attract and retain top-tier talent in a fiercely competitive market.