Unilever (UL) has proposed to change the way executives and directors are paid in a bid to make them act more like owners of the business.
The changes will put a greater emphasis on long-term employee stock ownership, Unilever said in its 2016 annual report released late Tuesday, and will be voted on at the company's annual shareholder meeting in April.
The proposals come after a tumultuous week and a half for the Anglo-Dutch consumer goods giant, which rebuffed a $143 billion takeover offer from Kraft Heinz (KHC) on Feb. 17 and announced a strategic review of its business on Feb. 22.
"Unilever is conducting a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders," Unilever said last week.
In its annual letter to shareholders the compensation committee said that during the year it undertook an extensive review of the company's reward framework.
The committee said that part of the purpose of the review was to increase shareholding levels throughout management population and align performance with the strategy of the company.
"Through these initiatives we will encourage all our employees fully to adopt an owner's mindset with the goal of achieving our growth ambition, so they can continuously reinvest and share in the future long-term success of Unilever," committee chairwoman Ann Fudge wrote.
Under the proposed new structure CEO Paul Polman will have to increase his shareholding requirement to five times his salary and CFO Graeme Pitkethly will be required to shares worth four times his salary.