Diageo cuts chief’s pay packet by €1.2m

Diageo has cut the pay of its two top executives after the drinks group missed performance targets, joining other UK companies in reining in management awards amid political and investor calls for restraint.

The London-based company — which owns the likes of Guinness, Baileys, Gordon’s, and Smirnoff — cut the variable portion of chief executive Ivan Menezes’ compensation by 35%, reducing his total pay for the latest financial year to £3.4m (€3.75m) from £4.5m a year earlier.

That part of chief financial officer Kathy Mikells’ package was reduced by half, the company said in its annual report.