Diageo: Debra Crew gets golden goodbye after being ousted as CEO
The former chief executive of FTSE 100 giant Diageo is set to receive a bumper pay day after being ousted last month, it has been revealed.
Debra Crew quit with immediate effect in July and was succeeded on an interim basis by the embattled drinks group’s finance boss Nik Jhangiani.
Diageo, whose brands include Johnnie Walker and Guinness, said an agreement for her departure had been by mutual consent and that it had already kicked off a “comprehensive formal search process” for a new chief executive.
Crew had been one of the few women leading a major UK-listed firm, bringing with her a background in consumer goods, including a stint as chief executive of the tobacco firm Reynolds American.
But her tenure has been marred by operational missteps and external headwinds.
Within five months of taking over, she was forced to issue a profit warning after Diageo misread sales trends in Latin America – a key market – leading to a steep drop in earnings guidance.
Former Diageo CEO a ‘good leaver’
Now, Diageo’s annual report has revealed that Crew’s remuneration increased from $3.8m to $4.8m in her final year in charge.
Her base salary rose from $1.7m to $1.8m while her annual incentive jumped from $868,000 to $1.5m.
According to Diageo’s annual report, the exact amount Crew will be paid following her official departure from the company on 30 September will be published next year.
From that date and subject to mitigation, Crew will receive a payment in lieu of notice of salary and benefits for the remainder of her 12-month notice period.
However, the group added that Crew remains eligible for the vesting of performance shares and share options granted under the 2022 Diageo Long-Term Incentive Plan (DLTIP) award, subject to a two-year post-vesting holding period.
However, after her departure Crew will have no entitlement for a payment under next year’s annual incentive plan and will forfeit DLTIP awards granted in 2023 and 2024. No further LTIP awards will also be granted to her.
Diageo added: “Debra also holds awards granted in 2022 under the DESAP relating to her role prior to her appointment as chief executive. In accordance with the remuneration policy, the remuneration committee exercised its discretion to treat Debra as a ‘good leaver’ in respect of these awards which will be retained, subject to proration for time and performance, and vest on their normal terms between September 2026 and September 2029.”