World: SABMiller boss may see his share awards decline if SAB’s share price continues to compare unfavourably with rivals

The Brexit vote could hit the blockbuster windfall that SABMiller’s boss will enjoy from the brewer’s £79 bln sale to rival Anheuser-Busch InBev, The Telegraph reported on August 13.

Alan Clark, a 25-year veteran of SAB and chief executive since 2013, has some long-term share awards that are valued in part by comparing the brewer’s share price performance against a group of rival consumer goods companies, including London-listed spirits giant Diageo and Unilever.

While shares in Diageo and Unilever have surged following the vote to leave the EU, SABMiller’s gains have been capped by AB InBev’s takeover offer.

If SAB’s share price continues to compare unfavourably with its rivals when the AB InBev deal completes, it will diminish the value of some of Mr Clark’s share awards, weighing on his overall windfall, which was expected to be £57 mln based on the pound’s value prior to the referendum.

Diageo shares have leapt 19pc since the Brexit vote as investors bet that the owner of Smirnoff vodka and Captain Morgan rum will benefit from the pound’s slump after the referendum, because it generates the majority of its revenues overseas in currencies other than sterling.

Unilever stock has also climbed 13.9pc since the June vote on hopes the consumer goods giant behind Dove soap and Magnum ice creams will benefit from Brexit.

SAB shares, by contrast, have only gained 2.1pc, limited by the value of the cash offer made by AB InBev.

Last year, the Belgian-Brazilian brewer behind Stella Artois offered investors £44 a share for SAB. A campaign by activist investors, who argued that AB InBev should pay more because of sterling’s weakness, resulted in the Stella Artois-owner lifting its offer to £45 a share.

The higher offer, which lifts the overall value of Mr Clark’s payout, could cancel out the hit he will take on the long-term share awards. SAB declined to comment.

15 August, 2016