Diageo : 3. Who, where, how much?

admin's picture


DIAGEO PLC

A Corporate Profile

By Corporate Watch UK
Completed May 2005


3. Who, where, how much

  • 3.1 Diageo's sites
  • 3.2Company Structure/ Ownership
  • 3.3 Company Officers
  • 3.4 Subsidiaries
  • 3.5 Auditors


  • Diageo is a UK-based multinational. Its principal brewing locations are in Ireland, the UK, Nigeria, Kenya, Jamaica, Malaysia and Cameroon, though it has bases and markets in 180 countries.

    3.1 Diageo's sites

    Diageo's Head Office:

    8 Henrietta Place

    London

    W1G 0NB

    Web: www.diageo.com

    Email: Company secretary; Investor Relations

    Park Royal Site:

    Cumberland Avenue

    Park Royal, London NW10 7RR

    020 8965 7700

    A major site for Diageo is its 'prestige office development' in Park Royal, West London, which is the head office for Diageo Great Britain, and until recently the site of brewing of Guinness for the UK, which is currently being moved to Ireland.1

    Diageo Ireland:

    St James's Gate, Dublin 8, Republic of Ireland

    Tel: 01 643 5438/5683

    Fax: 01 408 4814

    Email: irish.register@diageo.com

    Diageo Scotland ltd:

    Edinburgh Park

    5 Lochside Way

    Edinburgh

    Lothian EH12 9DT

    0131 519 2000

    Diageo Great Britain:

    Lakeside Drive

    London NW10 7HQ

    For a full list of Diageo's sites around the world, see the company's website: www.diageo.com/careers/index.html

    Back to top

    3.2 Company structure/ownership

    Diageo Plc is incorporated as a public limited company in England and Wales. It is listed on the London Stock Exchange, as DGE, and on the New York Stock Exchange, as DEO.

    Share value

    For information about Diageo’s share value see the company's Annual Review.2

    According to its Annual Review, Diageo has a total shareholder return (the change in capital value over a period of time of a listed company) of 39%, which makes it rank 6th amongst its competitors.3

    Shareholders

    Capital Group Companies, Inc. are the only major shareholders, with 123 million ordinary shares (4.01% of the issued ordinary share capital) and no different voting rights. No other major shareholders are listed in Diageo’s Annual Report.

    Annual turnover

    Turnover in 2004 was £8.89 bn, with total profit £1.87 bn after exceptional items and tax.5

    Operating profit before exceptional items and was £1.91 bn in 2004, down from £1.96 bn in 2003. 6

    Back to top

    3.3 Company officers7

    Executive Committee

  • Paul Walsh
  • Nicholas Rose
  • Stuart Fletcher
  • Jim Grover
  • Rob Malcolm
  • Ivan Menezes
  • Andrew Morgan
  • Tim Proctor
  • Gareth Williams
  • Board of Directors

  • Lord Blyth of Rowington
  • Lord Hollick of Notting Hill
  • Rodney Chase
  • Maria Lilja
  • Keith Oates
  • Jonathan Symonds
  • William Shanahan
  • Todd Stitzer
  • Paul Walker
  • Executive Committee

    Paul Walsh

    Chief Executive Director

    Diageo's CEO, Paul Walsh was listed by the Guardian as ranking 16th in the top twenty earners in Britain in 2003, with a salary of £3,457,909.8 He joined GrandMet in 1982 going on to become CEO of the Pillsbury Company in 1992. He was appointed to the Diageo Board in 1997 and became its CEO in 2000. His other appointments include Director of the Scotch Whisky Association, Non-Executive Director of Federal Express Corporation9, Non-Executive Director of Centrica PLC (amongst whose brands are British Gas and a number of other suppliers of gas, electricity and telecommunications)10, and Governor of Henley Management Centre.11

    Paul Walsh on business in the UK: 'The UK's enterprise culture needs strengthening. We need those who seek to legislate, regulate, or otherwise influence opinion to see business as an inherently good thing, creating prosperity and the foundation on which the institutions of civil society can flourish. We need to change the culture of this country so that enterprise is celebrated.'12

    Nicholas Rose

    Chief Financial Officer

    Nick Rose was Finance Director of UDV from 1997 and was appointed to the Diageo board in 1999. His other appointments include Non-Executive Director of Scottish Power13 and Non-Executive Director of Moet Hennessey SNC in France, which has joint ventures with Diageo.14

    Other members of the Executive Committee are:

    Stuart Fletcher - President of Diageo International;

    Jim Grover - Global Business Support Director;

    Rob Malcolm - President of Global Marketing Sales and Innovation (who has previously held positions at Proctor and Gamble);

    Ivan Menezes - President of Diageo North America;

    Andrew Morgan - President of Diageo Europe;

    Tim Proctor - General Counsel (who has previously held positions with GlaxoWellcome);

    Gareth Williams - Human Resources Director.

    Board of Directors

    Lord Blyth of Rowington

    Chair

    James Blyth was appointed as a Non-Executive Director in 1999 and chair in 2000. Lord Blyth's other interests include arms sales: he ran the Defence Export Services Organisation (DESO), the UK Ministry of Defence’s arms export promotion department, from 1981 to 1985, to which he was seconded from Lucas Aerospace ltd, an arms manufacturer.15 DESO's aims are to encourage arms sales by UK companies. It is a forum for arms industry executives to enter the heart of government, through secondments, in order to help the industry sell arms with direct government support.16 In addition Lord Blyth was Non-Executive Director of British Aerospace from 1990 to 1994.17 He has also been Chief Executive of the Plessey Company, and Chair of Boots Company PLC, which he left in 2000 having been Chief Executive since 1987. He is also currently Non-Executive Director of Anixter inc.18 and Vice-Chair of Greenhill inc., a global investment banking firm. Sir Anthony Greener, Chair of Diageo until 2000, announced Lord Blyth's appointment congratulating 'his experience with government,' an 'excellent qualification for the next chair of Diageo,' pointing to the value to the company of a director with experience of working with government,19 given its priorities at that time.

    Lord Hollick of Notting Hill

    Senior Non-Exeutive Director

    As well as being Senior Non-Executive Director of Diageo Clive Hollick has numerous interests. An active Labour Party member, he was a founding trustee of the Institute for Public Policy Research, a 'centre-left' think-tank that has been very influential on New Labour's policies.20 His work at the IPPR included establishing and being a member of the IPPR's Commission on Public Policy and British Business, which reported in 1997 and 'was subsequently influential in setting Labour's business policy for its first term.'21 The IPPR also organised a forum on responsible drinking in May 2004 which was hosted by Diageo and included speakers from Diageo as well as from government ministries, including Tony Blair.22 Lord Hollick was also a member of the House of Lords Committee on Science and Technology 1995-6, a special advisor to the President of the Board of Trade and the Secretary of State for Trade and Industry 1997-8, and an advisor to successive leaders of the Labour party since 1987, including Margaret Becket and Peter Mandelson. In 2000 he established a cross-party and business group 'Britain in Europe' campaigning for UK's adoption of the Euro.

    Lord Hollick is Chief Executive of United Business Media PLC, an international business information group with publishing, broadcasting and market research businesses. He was Managing Director of MAI PLC, a major international media and financial services group which merged with United News and Media PLC in 1996. He is chair of London's South Bank Centre.23 From 1995-7 he was a non-executive Director of Channel 5 Television Group Ltd.24 He is a Governor of the London School of Economics.25

    In 1998 Lord Hollick was placed as ranking 32nd in a 'power list' put together by Fulcrum TV, and voted by a panel, of 'Britain's most powerful people'.26

    Rodney Chase

    Rodney Chase retired as Senior Non-Executive Director at the 2004 AGM. He has also been Non-Executive Director of Tesco PLC and Deputy Group Chief Executive of BP PLC.

    Maria Lilja

    Non-Executive Director of Diageo

    Maria Lilja is a Non-Executive Director of Diageo. She was head of American Express Europe 1996-2000. She is also Non-Executive Chair of Mandator AB and Non-Executive Director of Bilia AB, Intrum Justitia AB, Observer AB and Poolia AB, all in Sweden.

    Keith Oates

    A Non-Executive Director before retiring at the 2004 AGM, who was also Senior Advisor to Coutts Bank, Monaco, Deputy chair of Marks and Spencers PLC before 1999, a BBC Governor, and Non-Executive Director of BT PLC;

    Jonathan Symonds

    Non-Executive Director

    Jonathan Symonds, Non-Executive Director, is also a member of the Accounting Standards Board, joint Chair of the Business Tax Forum, and Chair of the 100 group of Finance Directors. He is also Chief Financial Officer of AstraZeneca PLC,27 which he joined in 1997. Before that he was a partner at KPMG.

    William Shanahan

    Non-Executive Director

    A Non-Executive Director, William Shanahan has also been President of the Colgate-Palmolive company since 1992.28 He was appointed Non-Executive Director of Diageo in 1999.

    Todd Stitzer

    Non-Executive Director

    Todd Stitzer, a Non-Executive Director appointed in 2004, is also Chief Executive of Cadbury Schweppes PLC, a role he was appointed to in 2003.29

    Paul Walker

    Non-Executive Director

    Paul Walker, a non-executive director, is chief executive of the Sage Group PLC,30 which he joined in 1984, and a non-executive director of MyTravel Group PLC.31

    Back to top

    3.4 Subsidiaries

    Diageo has 296 listed subsidiaries, many of which have 'Diageo' in their name, including,

    Gleneagles Hotels Ltd32 33

    Gleneagles Hotel

    Auchterarder

    Perthshire, PH3 1NF

    The Gleneagles hotel will be the venue for the G8 summit hosted by Diageo in July 2005. 34

    Brighton Grand Hotel Company Ltd

    Haagendazs UK35

    6 The Market

    The Piazza

    London WC2E 8RA

    Haagendazs is a large American company producing ice cream. Some of their products have been investigated for GM products (see 'Corporate Crimes' section).36

    3.5 Auditors

    Diageo's auditors are KPMG Audit Plc 37

    Back to top


    References

    1 'Diageo announces plan to move Guinness® brewing from GB to Ireland' 15.04.2004 www.diageo.com/pageengine.asp?menu_id=0&site_id=1&section_id=2&page_id=1129 last viewed 05.05.05

    2 Diageo Annual Review 2004, www.diageo.com/download%5C3000---R530.pdf - p.84-162 - viewed 24.01.05

    3 Diageo Annual Review 2004, www.diageo.com/download%5C3000---R530.pdf - p.5 - viewed 24.01.05

    5 Diageo Annual Report 2004, www.diageo.com/download%5C3000---R531.pdf - p.26 - viewed 24.01.05

    6 Diageo Annual Report 2004, www.diageo.com/download%5C3000---R531.pdf - viewed 24.01.05

    7 Information about the officers can be found at Diageo's website www.diageo.com/pageengine.asp?menu_id=0&site_id=2&section_id=8&page_id=58; and in Who's Who 2004

    8 Guardian press release, 26.08.04,
    http://www.guardian.co.uk/pressoffice/pressrelease/story/0,,1294243,00.html
    viewed 24.01.05

    9 Federal Express: 942 South Shady Grove Road, Memphis, Tennessee 38120, 901-369-3600; www.fedex.com; 14, Place Sainte Gudule, B-1000 Brussel, ++32 (0)2 515 88 00; UK contacts: www.fedex.com/gb/contact/

    10 Centrica www.centrica.co.uk; Millstream, Maidenhead Rd, Windsor, SL4 5GD; Tel: 01753 494 000; Fax: 01753 494 001

    11 Henley Management Centre, www.henleymc.ac.uk; Greenlands, Henley-on-Thames, Oxfordshire, RG9 3AU 01491 571454; Fax: 0 1491 571635; email:

    12 Paul Walsh, Diageo CEO, The London Business School Summit on Global Leadership, 28.06.04 www.diageo.com/download%5C3000---R495.pdf - viewed 18.01.05

    13 Scottish Power; 1 Atlantic Quay, Glasgow, G2 8SP; www.scottishpower.com

    14 Moet Hennessey Louis Vuitton, 65 Avenue Edouard Vaillant, 92100, Boulogne-Billancourt, France www.lvmh.com

    15 www.hemscott.co.uk/guru_online_test_drive/ind_dir_biog.htm - viewed 18.01.05; Campaign Against the Arms Trade, www.caat.org.uk/information/publications/other/political-influence-0403.pdf - viewed 18.01.05

    16 To view the DESO website: www.deso.mod.uk/policy.htm - viewed 18.01.05 For more on DESO: Campaign Against the Arms Trade, www.caat.org.uk/information/publications/other/political-influence-0403.pdf - viewed 18.01.05

    17 Campaign Against the Arms Trade, www.caat.org.uk/information/magazine/0204/brothers-in-arms.php++lord+blyth+mod&hl=en - viewed 29.11.04

    18 Anixter European HQ 1 York Rd, Uxbridge UB9 1RN, 01895 818181, , UK HQ 1st Floor, Wellington House, 4-10 Cowley Rd Uxbridge UB8 2XW 01895 276800,

    19 Diageo News Release, 7 October 1999, 'Board Appointments at Diageo' www.diageo.com/pageengine.asp?menu_id=0&site_id=2&section_id=9&page_id=382

    20 Institute for Public Policy Research,

    www.ippr.org.uk/about/index.php?current=trustees - viewed 08.02.05

    21 Institute for Public Policy Research, www.ippr.org.uk/research/index.php?current=28&detail=history - viewed 29.11.04

    22 Julia Finch, 'Drink Firm's Shock for Bingers,' The Guardian, 09.10.04, http://www.guardian.co.uk/business/story/0,,1323368,00.html - viewed 10.02.05

    23www.culture.gov.uk/global/press_notices/archive_2002/dcms23_2002.htm?month=February&properties=archive_2002%2C%2Fglobal%2Fpress_notices%2Farchive_2002%2F%2C - viewed 29.11.04

    24 Channel 5, 22 Long Acre, London WC2E 9LY www.channel5.co.uk

    25 www.mynottinghill.co.uk/nottinghilltv/celebs&gossip-lord-hollick.htm- -viewed 18.01.05

    26 The Power List, Fulcrum TV, www.fulcrumtv.com/power.htm -viewed 05.05.2005

    27 AstraZeneca PLC, 15 Stanhope Gate, London W1K 1LN, 020 7304 5000, www.astrazeneca.co.uk

    28 Colgate-Palmolive www.colgate.com

    29 Cadbury Schweppes PLC, 25 Berkeley Sq., London W1J 6HB, 0800 279 9640, www.cadburyschweppes.com www.cadburyschweppes.com/EN/feedback/feedback.aspx?dept=Todd%20Stitzer - viewed 08.02.05

    30 The Sage Group PLC, North Park, Newcastle upon Tyne, NE13 9AA, 0191 294 3000, www.sage.co.uk/home.asp

    31 MyTravel Group, Parkway Business Centre, 300 Princes Rd., Manchester M14 7QU, 0161 232 0066 www.mytravelgroup.com,

    32 http://fame.bvdep.com/cgi/template.dll?context=33Y78C&tpl=reportframe&bitnr=14627&pushlink=0 - viewed 01.12.05

    33 Gleneagles website, www.gleneagles.com - viewed 24.01.05

    34 Grampian TV, 10.06.04, http://northtonight.grampiantv.co.uk/content/default.asp?page=s1_1_1&newsid=4038 - viewed 24.01.05

    35 http://fame.bvdep.com/cgi/template.dll?context=33Y78C&tpl=reportframe&bitnr=513278&pushlink=0 - viewed 01.12.05

    36 www.btinternet.com/-clairejr/foodcomp/foodcomp.html - viewed 10.10.04

    37 KPMG website, www.kpmg.com/ - viewed 08.02.05