What did he do to deserve all that money?
Becht became chief executive as a result of 1999\’s merger of Britain\’s Reckitt & Colman with Benckiser of the Netherlands. Since then, he turned a £3bn company into a £23.5bn juggernaut, helped by the £1.9bn acquisition of Boots\’s over-the-counter medicines wing in 2006 and last year\’s £2.5bn purchase of Durex-owner SSL International. Such success turned his share options into his truly unmentionable pay.
Oh, he increased capitalisation of the company by £20 billion.
So he cashed in share options (which is indeed where his mega wonga came from) of 0.45% of the increase in value that happened on his watch.
Up to you whether you think that\’s excessive or not really.
But let\’s run it this way. Bloke comes along and says, you know, I can manage that business of yours really well. I can increase the capital value. And you pay me 0.5% of any increase in value and you keep 99.5% of it.
It\’s not obvious that this is a bad deal for you.