Diageo chief executive Paul Walsh to step down

Diageo's chief executive, Paul Walsh, is stepping down after 13 years at the helm of the company behind Smirnoff and Guinness.

He will make way for company veteran Ivan Menezes, who has been chief operating officer of the drinks group since March last year.

Mr Walsh (57), will step down from the board at the annual meeting in September and will stay on until June next year to help ease the transition, drawing a full executive salary. Last year he received a £1.2 million salary as part of a total pay package worth £11.2 million.

Diageo chairman Lord Davies said his remuneration was appropriate given the strong performance of the business. Mr Walsh has complained about anti-business sentiment in the UK, claiming top executives are "constantly bludgeoned" for their high pay. He has also cashed in shares worth £12.7 million since last September, though he retains a substantial personal holding in the drinks group of 770,000 shares worth £15.4 million.

A Diageo spokeswoman said Mr Walsh had not decided on his next move. He holds a number of corporate non-executive roles and is an ambassador for the government’s business department.

Analysts were expecting the news of his departure, which the company had flagged up well in advance, and the shares inched down by just 0.2 per cent. – ( Guardian service)