Reckitt Benckiser Group today announced that its CEO Laxman Narasimhan will step down from his position on September 30, 2022, and will relocate to the United States, for personal and family reasons. He has also been approached for a new opportunity, the release said without revealing details. Narasimhan had previously worked at PepsiCo and McKinsey, before joining Reckitt in September 2019.
The maker of Dettol and Lysol disinfectants, in the announcement, said that Nicandro Durante who is the current Senior Independent Director, will step into the role of CEO, as the Board evaluates and selects the future leadership. The process to identify the ‘best long-term candidate’ to take the company’s next phase of growth journey, has begun already.
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“Having worked closely with Nicandro since I joined the Board, I have no doubt that he will provide the leadership needed for Reckitt at this important stage of transformation while we find the right long-term leader for the business,” said Chris Sinclair, Chairman of Reckitt, in the statement.
Nicardo will cease to be the Senior Independent Director with immediate effect and will step down from the Nomination, Remuneration and CRSEC Committees of the Board; and Andrew Bonfield will be appointed as Senior Independent Non-Executive Director to hold the role for an interim period until Jeremy Darroch joins the Board on 1 November 2022, according to the announcement by Catheryn O’Rourke, Company Secretary for Reckitt Benckiser Group.
What’s the CEO salary?
Nicardo, in his role as the company CEO, will receive a salary of GBP 1.1 million, and will be eligible to participate in Reckitt’s existing annual bonus plan with a target of 120 per cent of salary. The announcement by the company secretary also said, “In line with our Remuneration Policy this has a maximum of 3.57 times and with one-third of any bonus deferred into Reckitt shares for a period of three years. He will receive an initial LTIP grant of 75,000 shares and 150,000 options, for the three-year performance period 2022-2024, followed by a two-year holding period. The share ownership requirement will be 200,000 shares and there will be a formal post-employment shareholding requirement, for two years after departure.”
While Nicardo will not receive a pension allowance, he will get benefits in line with Reckitt’s remuneration policy. The new CEO is also eligible for relocation benefits since he is moving to the UK. Nicandro is being appointed on a rolling contract, which is terminable on either side with six months’ notice.