Key facts
- Diageo CEO Sir Dave Lewis could earn up to £20m in pay for the year to June 2027.
- This potential payout is linked to meeting performance targets, including a 50% share price increase.
- Lewis's target salary is £9.4m, with potential bonuses bringing the total to £15m or £20m.
- The proposed pay deal is part of a new long-term incentive scheme to be voted on by shareholders in November.
- Diageo recently cut nearly 2,000 jobs and reported a 3% dip in sales to $19.6bn for the year to June.
Sir Dave Lewis, the chief executive of drinks giant Diageo, is poised to potentially receive a significant pay package of up to £20 million in the year to June 2027. This figure is contingent on meeting specific performance targets, including a 50% increase in Diageo's share price, according to the company's remuneration report. Without the share price bonus, Lewis could still earn approximately £15 million if all other bonuses are achieved, though his 'target salary' is set at £9.4 million.
This potential remuneration far exceeds that of his predecessor, Debra Crew, who departed the FTSE 100 firm with £3.6 million in her last full year. Lewis, known for his turnaround strategies and nicknamed 'drastic' Dave, has reportedly instructed teams to cut up to 30% of their headcount as part of a broader restructuring effort.
The proposed bumper pay deal is tied to a new long-term incentive scheme that will be presented to shareholders for approval at the company's annual general meeting in November. This plan spans three years, from June 2026, and could allow Lewis to claim substantial rewards by September 2029. Diageo has reportedly consulted with about 40% of its shareholders regarding this new remuneration model.
Lewis, who took the helm at Diageo in January, was paid £1.4 million for the year ending June 2026. In the same year, the company shed nearly 2,000 jobs, a six percent reduction in its total headcount, with the majority of these cuts occurring in Africa. Diageo also reported a three percent dip in sales to $19.6 billion for the year to June, coinciding with Lewis's unveiling of an $850 million cost-cutting initiative. A Diageo spokesperson emphasized that the proposed remuneration policy is designed to attract and retain top leadership to execute the company's new strategy and improve financial performance for long-term shareholder value.