Reckitt Benckiser slashes boss's pay by 40%

Reckitt Benckiser, the maker of Durex condoms and Gaviscon, has cut its chief executive's pay package by 39% after a safety scandal that engulfed its South Korean division.

Rakesh Kapoor will receive £14.6m for 2016, down from £25.5m in 2015.

It also said it would be reducing his share awards for 2017 if RB's proposed acquisition of Mead Johnson went ahead.

The firm has previously been accused of having excessive pay levels.

Judy Sprieser, chair of RB's remuneration committee, said: "[We have] taken action in respect of both of these one-off events... following extensive engagement with our shareholders throughout the year."

Last May, RB apologised for selling a humidifier disinfectant that killed 93 people in South Korea between 2001 and 2011.

The firm apologised and set up a fund to compensate victims, however the tragedy led to one of its South Korean executives being jailed.

On Friday, RB said it had also cut Mr Kapoor's pay in light of the events, even though they happened before he started his job.

It also said it had taken "feedback" from RB's major shareholders over the proposed takeover of Mead Johnson, maker of infant formula.

Earlier this year, some shareholders suggested Mr Kapoor had pursued the £14.2bn tie-up to ensure he hit lucrative bonus targets.

Mr Kapoor said the deal was in line with company strategy and would generate £200m of cost savings after three years - although it would not generate a return for about five years.

Last year, some 17.7% shareholders voted against his 2015 remuneration package, while the firm faced criticism from lobby groups over its pay levels.

Mr Kapoor, who became chief executive in 2011, was Britain's third highest-paid chief executive in 2015.