Cees ‘t Hart, the chief executive of Danish brewing giant Carlsberg, took home a smaller salary last year after his share-based payments were cut back.
Carlsberg’s supervisory board approved the new annual report on Tuesday, which outlined the brewer’s sales performance across all markets, its sustainability targets for the years ahead, and executive’s salaries.
Operating profit in increased organically by 10.7% last year, which the brewer said was thanks to growth in Asia and Western Europe, which “more than offset the decline in Eastern Europe.”
Revenues in Asia grew organically by 12.3% in the year to 31 December, which the CEO said was a result of a 6% increase in volumes and an increase in sales of more expensive brands.
But Hart took home DKK 2.7 million less last year despite an overall increase in annual salary.
Hart’s fixed salary increased from DKK 12.3 million in 2018 to DKK 12.6 million last year, but was given a smaller cash bonus, share-based payments and renumeration, according to the report.
Carlsberg said the “potential maximum bonus for the CEO and CFO was 100% of fixed salary, with a bonus equal to 60% of fixed salary payable for on-target performance.”
The brewery was criticised by Danish media last year for the amount of renumeration payment its CEO had been handed in 2018. Hart’s total pay rose by 22%, but chairman Fleming Besenbacher said last march he would have his salary essentially frozen the next year.
Besenbacher said at the time: “Aside from marginal adjustments, we don’t expect to see increases in next year’s report, even if the results continue to be as strong as they’ve been in recent years.”