Bart Becht, the CEO of Reckitt Benckiser, a manufacturer of home, health and personal care products says he is worth his monster pay package, £36.8 for 2009.
“We pay for performance. It’s very straightforward,” he told The UK Times.
He believes that his company’s shareholder returns justify his pay.
“There’s a very clear link between stock awarded and shareholder value.”
According to The Times, Reckitt is predicted to announce full year sales of around £7.7 billion on Wednesday, a rise in annual profits of more than 20%.
Interestingly, up until a decade ago, laws in the UK prohibited annual bonuses like Brecht’s. Bonus pay was restricted from being any more than 50% of salary. Long-term incentives and options could only be worth a maximum of 125% of salary.
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