Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • September 2003
  • Case
  • HBS Case Collection

Executive Compensation at Reckitt Benckiser plc

By: V.G. Narayanan, Krishna G. Palepu and Lisa Brem
  • Format:Print
  • | Pages:19
ShareBar

Abstract

Investors felt betrayed by the increasingly lucrative pay packages awarded to CEOs and other top executives at multinational companies. Yet, board members charged with adequately rewarding executives were forced to compete with rising packages of salaries and stock options. Bart Becht, CEO of Reckitt Benckiser, the Anglo-Dutch manufacturer of cleaning products, was the United Kingdom's highest paid CEO in 2003. With shareholder protests looming at its annual meeting, should the board reconsider Becht's pay package or ride out the storm? Examines the issues facing board compensation committees when trying to design remuneration packages that will keep CEOs performing and meet shareholder goals. Discusses the viability of stock options, proper balance between variable and nonvariable pay, setting effective performance targets, and how rising U.S. pay affects global companies.

Keywords

Design; Stock Options; Investment Activism; Corporate Accountability; Compensation and Benefits; Employee Stock Ownership Plan; Management Teams; Business and Shareholder Relations; Consumer Products Industry; Netherlands; United States

Citation

Narayanan, V.G., Krishna G. Palepu, and Lisa Brem. "Executive Compensation at Reckitt Benckiser plc." Harvard Business School Case 104-006, September 2003.
  • Educators

About The Authors

V.G. Narayanan

Accounting and Management
→More Publications

Krishna G. Palepu

Accounting and Management
→More Publications

More from the Authors

    • March 2022
    • Faculty Research

    Swvl: Smart Mobility for the Masses

    By: Krishna Palepu, Esel Çekin and Menna Hassan
    • January 2022
    • Faculty Research

    Assistant Professor Dawn Jorgensen Navigates the Hybrid Classroom

    By: V.G. Narayanan
    • January 2022
    • Faculty Research

    Hybrid Classroom - an Opportunity or a Threat?

    By: V.G. Narayanan
More from the Authors
  • Swvl: Smart Mobility for the Masses By: Krishna Palepu, Esel Çekin and Menna Hassan
  • Assistant Professor Dawn Jorgensen Navigates the Hybrid Classroom By: V.G. Narayanan
  • Hybrid Classroom - an Opportunity or a Threat? By: V.G. Narayanan
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Digital Accessibility
Copyright © President & Fellows of Harvard College