Unilever is facing an investor revolt after proxy advisor ISS recommended that shareholders vote against its chief executive’s pay.

The consumer goods giant, which owns a portfolio that includes popular brands such as Dove, Hellmann’s and Marmite, has faced a backlash against its upcoming remuneration report, set to be revealed at its annual meeting later this month, reported Sky News.

It is reported that sources familiar with ISS’s report on Unilever’s AGM resolutions expect Unilever to reveal that new chief executive Fernando Fernandez will receive a salary discounted by just €50,000 compared to that of previous boss Hein Schumacher.

This is despite Unilever announcing, after Schumacher’s sudden exit in February, that Fernandez would be paid a basic salary of €1.8m,  lower than Schumacher’s €1.85m.

The proxy adviser told Sky News that Fernandez’s “base salary as new CEO is significant and represents a small discount to the former CEO Hein Schumacher’s base salary.

“The company does not appear to have sufficiently accounted previously raised shareholder concerns on the CEO role’s pay arrangement when setting Mr Fernandez’s remuneration.”

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The subject of chief executive pay has long been a topic of contention in the grocery industry. In 2024, NGO group ShareAction called for the Tesco chief executive Ken Murphy to justify his £10m pay package.

In a post-earning call with journalists, the supermarket boss admitted he was “well paid” but added: “Remuneration is set by the board, and delegated by the owners of the company, the shareholders.

“Over two-thirds of it is variable and dependent on long-reaching and hitting exceeding long-term financial goals. And I wouldn’t really say any more than that.”

Elsewhere, it was revealed that M&S chief executives Stuart Machin and Katie Bickerstaffe received pay packets of almost £5m, while, Sainsbury’s CEO Simon Roberts was paid £4.91m in the last financial year.