The founder and chief executive of Deliveroo could be in line for massive pay day in the wake of the FTSE 250 delivery giant making its first annual profit.
The company could hand Will Shu a pay packet of more than £5.6m after adding the CEO to its long-term incentive plan and if Deliveroo’s shares increase to a new target.
According to the firm’s annual report, Shu’s potential maximum pay out would include his fixed remuneration, annual bonus, performance share plan as well as being boosted by a potential rise in the share price.
Without the hoped-for share price increase, Deliveroo could hand Shu a pay packet of almost £4.4m.
The minimum he would receive is his fixed salary, which would stand at £738,000, while the CEO’s target award has been set at £2.5m.
The potential pay boost for Shu forms part of wider changes to the company’s remuneration policy which are set to be voted on by shareholders at its annual general meeting in the coming weeks.
Other changes include the maximum performance share plan pay out being reduced from 600 per cent to 400 per cent of salary “to reflect Deliveroo’s position in the stock market”.
Deliveroo’s shares are currently trading at around 123p each, giving the company a market capitalisation of £1.85bn.
However, the price is far below the record high of 386p which was set in August 2021.
Other remuneration policy changes include the minimum shareholding requirement for executive directors being reduced from 800 per cent to 400 per cent of salary while the policy on bonus deferral will also be amended.
Earlier this month, Deliveroo reported a profit of £2.9m for 2024 after having made a loss of £31.8m in the year before.
Revenue grew two per cent year-on-year, from £2.03bn to £2.07bn, while gross profit rose six per cent to £767m.
Deliveroo share price slumped after IPO
Writing in the annual report, remuneration chair Dame Karen Jones said: “We believe that the majority of the current policy remains fit for purpose and will be carried over.
“Given business and external environment changes over the past three years, we believe that targeted changes are required for us to continue to recruit, retain and motivate the top executive talent required to meet our strategic objectives, especially when it comes to the highly competitive marketplace for skilled tech and data talent.”
Last year, City AM reported that the top bosses at Deliveroo have been awarded their first pay rises since the company’s float on the London Stock Exchange.
The business completed its IPO at the end of March 2021 with an offer price of 390p per share.
However, its shares plunged by as much as 30 per cent on the first day, wiping over £2bn off its valuation.
Ahead of the float, the listing had been hotly anticipated as it was the London Stock Exchange’s biggest IPO since Glencore’s market debut in 2011.
In September last year, City AM reported that Will Shu had received a pay day of almost £15m after selling more than nine million shares in the London-listed company.