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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
03 May 2024
Commission File Number: 001-10691
DIAGEO plc
(Translation
of registrant’s name into English)
16 Great Marlborough Street, London, United Kingdom, W1F 7HS
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F X
Form
40-F
Diageo plc
LEI: 213800ZVIELEA55JMJ32
This announcement contains inside information
Nik Jhangiani to join Diageo as Chief Financial
Officer
3 May 2024, London, UK: Diageo
plc ('Diageo') today announces that Nik Jhangiani will join the
company as Chief Financial Officer, taking up the position and
joining Diageo's Board and Executive Committee in Autumn
2024.
Lavanya Chandrashekar will step down from the Executive Committee
and Board at the same time after three years as Chief Financial
Officer and six years with the company, and will return to the
US.
Nik Jhangiani is currently Chief Financial Officer at Coca-Cola
Europacific Partners (CCEP), the world's largest Coca-Cola bottler
with revenues of over €18
billion in 2023, a role he has held since 2016. CCEP is listed on
the London Stock Exchange, NASDAQ, Euronext Amsterdam, and the
Spanish Stock Exchanges.
Nik has more than 30 years of finance experience gained in roles in
the UK, Europe, India, Africa and the US, including 20 years as
Chief Financial Officer; and has spent most of his career in
consumer and beverage industries including 20 years within the
Coca-Cola system.
Prior to his current role, Nik was Chief Financial Officer and
SVP at Coca-Cola Enterprises (CCE) from 2013 to 2016, having joined
CCE in 2012. From 2009 to 2012 Nik was Group Chief Financial
Officer at Bharti Enterprises, one of India's leading business
groups with operations in 21 countries and interests in telecoms,
food, retail and real estate.
Lavanya Chandrashekar joined Diageo in 2018 as Chief Financial
Officer North America and was appointed Chief Financial Officer of
Diageo plc in July 2021. Lavanya has been key to the delivery
of a 10.5% net sales value CAGR and has been instrumental in
accelerating Diageo's productivity agenda. Under Lavanya's
leadership, the business is on track to exceed its
$1.5 billion three-year productivity savings target by the end of
fiscal 24, and has increased long term investment in capital
expenditure and maturing stock by 40%+, while creating value for
shareholders by growing dividends and continuing its return of
capital programme. Lavanya has also put in place Diageo's
£500 million supply agility programme which will help deliver
the company's $2.0 billion productivity target from
fiscal 25 to fiscal 27.
Debra Crew, Chief Executive, Diageo said:
"I am delighted that Nik will be joining us. He is a highly
experienced CFO with a proven global track-record of generating
growth across multiple consumer businesses and industries.
Nik's experience and international mindset will make him a strong
addition to our leadership team.
"I am grateful to Lavanya for her leadership over the last six
years and her contribution as Diageo successfully expanded our
business through a global pandemic and delivered major productivity
savings. I want to thank Lavanya for being a trusted
colleague and partner to me, both when we worked together in North
America, and more recently as I took on the role of Chief Executive
Officer. On behalf of all Diageo colleagues, I wish her much
future success as she returns to the US.
"With a strong focus on execution, we will continue to invest
behind our world-leading brands to create value for shareholders
and maintain our position as an industry leader in total beverage
alcohol, which we strongly believe is an attractive sector with a
long runway for growth."
Javier Ferrán, Chair, Diageo said:
"I look forward to welcoming Nik to Diageo, and to the Board.
I am confident that his record of success as a CFO in multiple
relevant markets and sectors will further strengthen our long-term
track record of delivering long-term sustainable returns for our
shareholders. The Board also wishes to thank Lavanya warmly
for her strong contributions to Diageo over the past six
years. She has been instrumental in framing our long-term
ambitions and driving a culture of operational excellence
throughout her tenure, and we wish her well for the
future."
Nik Jhangiani said:
"I am delighted to be joining Diageo. It is an organisation I
have long admired and one of the world's most respected and trusted
consumer businesses. I look forward to working with my new
colleagues to drive value for Diageo's shareholders, and to support
the company's strong track record of building and sustaining
exceptional brands."
Lavanya Chandrashekar said:
"I am proud to have overseen a strong period of growth for Diageo,
and to have embedded a culture of productivity and efficiency which
will set the business up for long-term success. I am very
grateful to my exceptionally talented Finance, Data and Technology,
and Shared Service Operations teams, and I wish Debra and all my
Diageo colleagues the best for the future."
In accordance with Listing Rule 9.6.15, Diageo confirms that there
are no further details to be disclosed pursuant to Listing Rule
9.6.13.
Tom Shropshire, General Counsel and Company Secretary, is
responsible for arranging the release of this announcement on
behalf of Diageo.
ENDS
Contacts
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Investor relations:
Durga Doraisamy
Andy Ryan
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+44 (0) 7902 126 906
+44 (0) 7803 854 842
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Media relations:
Brendan O'Grady
Rebecca Perry
Clare Cavana
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+44 (0) 7812 183 750
+44 (0) 7590 809 101
+44 (0) 7751 742 072
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Notes to editors
Nik Jhangiani biography
Nik (Manik) Jhangiani is currently Chief Financial Officer of
Coca-Cola Europacific Partners plc (CCEP), the world's largest
Coca-Cola bottler, which is headquartered in the UK and operates
across 31 markets with 81 production sites and 42,000 employees,
serving around 2 million customers and 600 million
consumers.
Nik was appointed Chief Financial Officer of Coca-Cola European
Partners in May 2016. His responsibilities have included managing
all aspects of the finance function, external financial reporting,
mergers and acquisitions, investor relations, business unit
finance, internal audit, finance transformation and tax &
treasury. During his tenure Nik has demonstrated significant
capital markets, M&A, and investor relations responsibilities,
steering the organisation through complex transactions, delivering
business synergies and creating value for
shareholders.
From 2009 to 2012 Nik was Group Chief Financial Officer and a
member of the management board at Bharti Enterprises, one of
India's leading business groups with operations in 21 countries and
interests in telecoms, food, retail and real estate, where he led
the acquisition of the African assets of the Zain Group for an
enterprise valuation of $10.7 billion, and conducted a strategic
review across the Bharti business resulting in several key
decisions including exiting from a financial services joint venture
with AXA. He was also involved in the preparations for one of
India's largest IPOs in the telecoms tower
space.
Nik is a Certified Public Accountant in the state of New York and
holds a degree in economics and accounting from Rutgers
University. He began his career with Deloitte, then working
at Bristol Myers Squibb in International Audit, and the Colgate
Palmolive Company in roles including Group Financial Director for
Nigeria, before joining the Coca-Cola Company in Atlanta in
1998. In 2000, he joined the newly-formed Coca-Cola Hellenic
Bottling Company, becoming Chief Financial Officer in 2004 where he
held a number of senior responsibilities before joining Bharti
Enterprises. Nik will continue to be based in the UK when he
joins Diageo.
Lavanya Chandrashekar biography
Lavanya was appointed Chief Financial Officer of Diageo plc and a
member of the Board of Directors of Diageo in July 2021. In
addition to her core finance responsibilities, Lavanya also leads
Diageo's Data and Technology, Shared Service Operations, and until
recently Strategy functions. As CFO Lavanya has driven
several large transformation projects including the change of
functional currency from GBP to USD, instituting a new Global
Process Ownership model, and the implementation of SAP 4
HANA.
Lavanya joined Diageo in 2018 as Chief Financial Officer, North
America, Diageo's largest business unit accounting for ~40% of
revenues and more than half of group profits. In that role, Lavanya
was instrumental in returning the North America business to
sustainable market share growth, integrating the Casamigos
acquisition, and leading the divestiture of 18 small brands.
Lavanya later took on additional responsibilities as Global Head of
Investor Relations, formulating the Group's new investor
communications strategy in the midst of the Covid
crisis.
Prior to joining Diageo in 2018, Lavanya Chandrashekar spent nearly
five years at Mondelēz International. As VP Finance, Global
Cost Leadership and Supply Chain, Lavanya led a global productivity
programme that delivered strong operating margin improvement during
a period of shareholder activism. Prior to this, Lavanya was
Regional CFO of the Eastern Europe, Middle East and Africa business
based in Dubai during a period of extreme macro and geopolitical
volatility, driving consistent revenue and profit growth while
transitioning from a traditional finance organization to a shared
service outsourcing model.
Prior to Mondelēz International, Lavanya spent 18 years at
Procter & Gamble in senior finance positions in India, Asia,
Europe and North America.
Supplementary information
Nik Jhangiani
Nik Jhangiani's remuneration package will include an annual salary
of £900,000 and a pension contribution (or allowance in lieu)
of 14% of base salary, in line with the maximum pension
contribution level for new employees to the UK
workforce. Nik
will also have an annual incentive plan opportunity, bonus
deferral, long term incentive plan opportunity and shareholding
requirement as an Executive Director in accordance with Diageo's
Directors' Remuneration Policy, as approved by
shareholders.
Nik will receive replacement awards in respect of the incentives
which are forfeited as a result of him leaving his current employer
to join Diageo in accordance with Diageo's Directors' Remuneration
Policy.
Details of Nik's future remuneration will be included in the
Directors' Remuneration Report for the year ending 30 June
2024.
Lavanya Chandrashekar
The remuneration arrangements for Lavanya have been determined by
the Remuneration Committee in line with the Directors' Remuneration
Policy and her service contract. Full details will be included in
the Directors' Remuneration Report for the year ending 30 June
2024.
In summary, Lavanya will be eligible to receive a bonus under
Diageo's Annual Incentive Plan (AIP) for the financial years ending
30 June 2024 and 30 June 2025, payable at the normal times and
subject, as appropriate, to time pro-rating and financial and
individual performance, with one-third of any bonus payable
delivered in deferred bonus shares. All Long-Term Incentive Plan
(LTIP) awards which are unvested at the point Lavanya's employment
ceases will be pro-rated to the date of cessation of employment and
will remain subject to performance conditions measured over the
original performance period and a two-year post-vesting holding
period. The Company's Malus and Clawback Policy will continue to
apply. Lavanya
will be subject to post-employment shareholding requirements as set
out in the Directors' Remuneration Policy. The policy requires her
to continue to hold shares to the value of the lesser of 400% of
her salary on cessation of employment or her actual
holding.
About Diageo
Diageo is a global leader in beverage alcohol with an outstanding
collection of brands including Johnnie Walker, Crown Royal, JeB and
Buchanan's whiskies, Smirnoff, Cоroc and Ketel One vodkas,
Captain Morgan, Baileys, Don Julio, Tanqueray and
Guinness.
Diageo is a global company, and our products are sold in nearly 180
countries around the world. The company is listed on both the
London Stock Exchange (DGE) and the New York Stock Exchange (DEO).
For more information about Diageo, our people, our brands, and
performance, visit us at www.diageo.com. Visit Diageo's global
responsible drinking resource, www.DRINKiQ.com for information,
initiatives, and ways to share best practice.
Celebrating life, every day, everywhere
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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Diageo plc
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(Registrant)
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Date:
03 May 2024
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By:___/s/
James Edmunds
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James Edmunds
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Deputy Company Secretary
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