Deliveroo CEO’s salary rises 16% to £600,000 – plus £5m in shares | Deliveroo
Deliveroo chief executive Will Shu has received a base pay rise of almost 16% this year after winning a salary of £519,200 and a share payment of £5.2million last year.
The takeaway courier boss will receive a base salary of £600,000 this year and is due to receive nearly £5m more in shares in April 2023, as part of a £30m package to the the next six years, according to the group’s annual report released on Wednesday. .
Alex Marshall, the president of the concert workers’ union IWGB, criticized the large payments, which he said came at a time when couriers – forced by Deliveroo to pay their own fuel and vehicle costs – were facing an unprecedented increase in the cost of living and fuel.
“These couriers have made a huge change, working throughout the pandemic to get food to isolated families, but like many workers they are paying the price of the pandemic while bosses line their pockets,” said he declared.
Deliveroo says, based on a driver survey, that 85% of its drivers globally are satisfied or very satisfied with working for the company, adding that recruitment and retention rates have “remained robust” l last year despite rising vacancies in the UK and elsewhere.
Shu’s latest base salary increase comes after a hefty 47% increase in base salary between 2020 and last year as well as 33.3 million shares he received before the company went public. scholarship a year ago. This stock is worth nearly £40m at the current share price.
The £5.2m of shares Shu received in December, and those positioned for April next year, are part of an additional package of 27.1m shares lined up at press time. IPO, and which is gradually handed over to it over the next six years. Those shares were worth £105.6million when first allotted, but their value has fallen since Deliveroo’s IPO in March to just over £30million at the current share price.
Shares were hit by concerns over new EU gig economy worker rights rules that could drive up costs for Deliveroo, as well as a general decline in tech stocks and concerns over the the company’s ability to make a profit.
Deliveroo’s falling share price led to bonus payouts for Deliveroo’s chief financial officer, Adam Miller, as well as Shu.
Miller’s base salary for this year has increased by just over 14% to £500,000. He was also due to receive an annual bonus of 144% of his salary at the end of the year, half of which – £360,000 – was paid in cash but the other half in shares.
However, Deliveroo’s board reduced the share bonus by calculating the number of shares he should receive based on the 390p price at which the delivery company went public rather than the price of 234p at the time the bonus was awarded, thus reducing the payout. by 40%.
Miller is also lined up for long-term awards equal to 600% of his salary, but again the set aside shares, for the award that will vest based on performance over the next few years, have been reduced by 40%.