INDIAN origin incoming chief executive of Reckitt Benckiser (RB) is in line to get over £7.5 million as compensation for joining the British multinational business giant.
Laxman Narasimhan, 52, who is scheduled to join RB leaving PepsiCo from next month.
Narasimhan had been granted remunerative replacement share and cash awards forfeited on leaving the US based business group.
The performance shares relate to three-year incentive awards granted to Narasimhan in the past two years, which are set to vest in 2020 and 2021.
Rakesh Kapoor, 61, who is set to become Narasimhan’s predecessor in September has been one among the 10 highest paid business bosses, according to the High Pay Centre.
Indian origin Kapoor was paid a sum of £15.2m in 2018, up from almost £9m he received in 2017.
The ‘target amount’ of Narasimhan’s award is worth a total of £5.3m. A maximum of 156,274 shares could vest if performance conditions are met in full. This means the value could rise to £9.3m, based on RB’s present share price.
He also has received replacement awards in cash. It amounts to about £2.3m but the figure could rise to as much as £4.6m, if maximum performance conditions are met.
The awards are on top of Narasimhan’s £950,000 salary package at RB, a pension allowance of 10 per cent of pay, a bonus with a target of 120 per cent of salary and a long-term incentive grant of 75,000 shares and 150,000 options for RB’s performance period 2019-21, which are set to vest in 2022 but are subject to terms and conditions.
Narasimhan will become group CEO with effect from September 1.
He will serve as group chief executive officer at RB, while also directly leading the health business unit.
The top executive holds a degree in mechanical engineering from University of Pune, India and an MBA in finance from the Wharton School at the University of Pennsylvania.
Before joining PepsiCo in 2012, he spent nearly two decades working as a consultant at McKinsey.
Narasimhan joins RB from PepsiCo where he is currently the global chief commercial officer responsible for PepsiCo’s integrated long-term growth strategy.
He leads strategy, global category groups, global research and development and is implementing an advanced digital capability across the PepsiCo business.