Diageo announces golden parachute for ousted CEO Debra Crew
Diageo, the global beverage giant, has announced the resignation of its CEO, Debra Crew, effective from July. The announcement came after a series of operational missteps and external headwinds that forced the company to issue a profit warning within five months of Crew taking over.
Crew, who was one of the few women leading a major UK-listed firm, had a distinguished career in consumer goods, serving as CEO of Reynolds American before joining Diageo. During her tenure at Diageo, her annual remuneration increased from $3.8m to $4.8m in her final year as CEO.
The profit warning led to a steep drop in Diageo's earnings guidance, with the company acknowledging misread sales trends in Latin America as a significant factor. This misstep, coupled with other operational challenges, seems to have contributed to Crew's decision to step down.
Upon 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. However, she remains eligible for the vesting of performance shares and share options granted under the 2022 Diageo Long-Term Incentive Plan (DLTIP), subject to a two-year post-vesting holding period.
Crew will also receive a payment in lieu of notice of salary and benefits for the remainder of her 12-month notice period. The exact amount she will be paid following her official departure on 30 September will be published next year.
Nik Jhangiani has taken over Diageo on an interim basis, and the company has initiated a formal search process for a new CEO. The search results do not mention any details about Crew's severance package beyond publicly accessible summaries.
Crew's departure marked a significant turning point for Diageo, with the company now looking to the future and a new leadership team to navigate the challenges ahead.
In the wake of Crew's departure from Diageo, the company is seeking a new CEO to navigate future business challenges in the ever-evolving finance industry. Despite leaving her position with no entitlement to next year's annual incentive plan, Crew remains eligible for the vesting of performance shares and share options granted under the 2022 Diageo Long-Term Incentive Plan, provided she adheres to a two-year post-vesting holding period.
