SABMiller boss to swallow pay cut after brewer's profits fall
The boss of SABMiller is having to stomach a 17% drop in his pay packet after the brewer's profit tumbled following its costly bid to merge with Anheuser-Busch InBev
Chief executive Alan Clark has seen his total remuneration slashed to £5.9 million this year, down from £7.1 million in 2015, driven by a 45% drop in long term incentives to £2.4 million.
Mr Clark was handed base pay of £1.2 million and a £1.7 million annual bonus, alongside retirement and other benefits of £593,000.
According to the firm's annual report, growth in underlying revenues, EBITA and adjusted earnings per share have lead to "above target bonuses for the year".
However, the depreciation of currencies against the dollar has caused " some long-term incentive awards with three to five-year performance periods to lapse with a nil payout".
The slide in pay comes after the Castle Lager maker announced in May that adjusted full-year pre-tax profit had dropped 16% to 4.1 billion US dollars (£2.8 billion).
The London-based firm was stung by a 573 million US dollar (£396 million) impairment charge related to investments in Angola and South Sudan and 160 million dollars (£110 million) in merger costs.
The European Commission has approved AB InBev's £71 billion takeover of SABMiller on the condition that ''practically the entire SABMiller beer business in Europe'' is sold off.
SABMiller said clearance from the antitrust watchdog last month represents a ''significant milestone for the deal'' and paves the way for completion in the second half of the year.
SAB said in March that it was willing to put its central and eastern European business on the sale block in a bid to assuage regulatory concern over the tie-up agreed in November last year.
AB InBev also confirmed it was putting Peroni, Grolsch and its Meantime brewery up for sale in December, less than a month after formally agreeing the SABMiller takeover following protracted talks.
The mega-merger will become the largest takeover of a UK-based firm as well as the fourth biggest in global corporate history.
SAB employs around 69,000 people in more than 80 countries and has global annual sales of more than 26 billion US dollars (£18 billion).