![\"Diageo](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/iStock-1216786602-640x427-1.jpg\")
<\/p>\nDiageo chief executive Sir Dave Lewis could receive as much as \u00a320.02 million for the year to June 2027 if maximum performance conditions are met alongside a 50% rise in the company\u2019s share price. The potential payout comes as the Guinness and Johnnie Walker owner pushes ahead with a major restructuring programme and job cuts designed to make the business more competitive.<\/p>\n
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Diageo chief executive Sir Dave Lewis could earn more than \u00a320 million in the year to June 2027 under the drinks giant\u2019s latest remuneration framework.<\/p>\n
According to Diageo\u2019s 2026 annual report<\/a>, Lewis has four possible remuneration outcomes for the financial year ending 30 June 2027.<\/p>\n At the minimum level, his package would be worth around \u00a31.87m. At target, it rises to \u00a39.40m, with a maximum outcome of \u00a315m.<\/p>\n If maximum performance conditions are met and Diageo\u2019s share price also rises by 50%, the total could reach \u00a320.02m.<\/p>\n The figures emerge as Lewis leads a wide-ranging turnaround of the company, including a new operating model, tighter cost controls and job cuts across the business.<\/p>\n \u00a320m at the top end<\/p>\n The largest potential award depends not only on Lewis meeting maximum incentive targets but also on substantial share-price appreciation.<\/p>\n Diageo\u2019s remuneration disclosure therefore does not suggest \u00a320.02m is his expected pay. The company\u2019s target outcome is \u00a39.40m, with the \u00a320m figure representing the most favourable scenario presented in the report.<\/p>\n Even so, the size of the potential package is likely to attract attention given the wider restructuring taking place across Diageo.<\/p>\n Lewis joined as chief executive in January and has moved quickly to reshape the business after a difficult period for the world\u2019s largest international spirits group.<\/p>\n In the annual report, he acknowledged the scale of the challenge.<\/p>\n \u201cThere is no denying that fiscal 26 was a challenging year, particularly given the macroeconomic backdrop and continued pressure on consumer wallets,\u201d Lewis said.<\/p>\n \u201cThere are some positives, we have seen growth in three out of five of our regions, however, we have been uncompetitive in our largest market, North America, and urgent work is underway to address this.\u201d<\/p>\n Jobs go as Diageo restructures<\/p>\n As previously reported by the drinks business<\/a>, Lewis instructed senior executives earlier this year to reduce headcount and other costs within their departments as part of the company\u2019s attempt to become more competitive.<\/p>\n Diageo subsequently unveiled a two-year US$1.2 billion restructuring programme, comprising US$1.1bn of investment in a new operating framework and a further US$100m in the supply chain.<\/p>\n The business said the changes are intended to create a more agile organisation and improve growth, cash generation and shareholder returns.<\/p>\n The precise global impact on employment has not been detailed in the annual report material supplied, although Diageo currently says it employs more than 27,500 people across more than 110 manufacturing sites.<\/p>\n The restructuring follows earlier reports that staff reductions were being prepared across the company.<\/p>\n Profits and dividend fall<\/p>\n Lewis\u2019s potential remuneration also comes against a weaker set of headline financial results.<\/p>\n Diageo reported net sales of US$19.64bn for fiscal 2026, down 3% on the previous year, with organic sales falling 2%.<\/p>\n Reported operating profit dropped 27% to US$3.16bn, while earnings per share fell 26% to 78.1 cents.<\/p>\n The recommended dividend was cut to 50 cents per share from 103.48 cents the previous year.<\/p>\n North America remains the biggest concern. Diageo said its performance there had been uncompetitive and has made turning around the region one of the central planks of its three-year plan.<\/p>\n Chair Sir John Manzoni said: \u201cThis has been a year of significant change for Diageo, but one in which we have taken important steps to drive the company\u2019s transformation.\u201d<\/p>\n He added: \u201cWe also recognise that Diageo should be doing more to reach its potential. I want to be clear about that.\u201d<\/p>\n Lewis bets on turnaround<\/p>\n At its Capital Markets Day on 6 August, Diageo set out a new strategy built around what it calls a more competitive operating framework, greater use of the company\u2019s full portfolio and a renewed emphasis on customer partnerships.<\/p>\n The company also said it expects leverage to fall to the midpoint of its 2.5 to 3 times net debt to EBITDA target range in fiscal 2027 and to around two times by the end of fiscal 2029, absent further board action.<\/p>\n Related news<\/p>\n \n \n
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