SABMiller CEO Alan Clark took a £1.2m cut in total pay last year, but will shortly be in line to receive a payout of £55m — once the London-listed brewing group is taken over by larger rival Anheuser-Busch InBev.

According to the company’s annual report, published on Monday, Clark’s total remuneration in the year to March 31 fell 17%, to £5.9m from £7.1m a year earlier.

His fixed pay increased from £1.5m to £1.7m, while his bonus rose 56% to £1.7m.

But the value of his long-term incentive scheme fell to £2.4m from £4.4m a year earlier.

This scheme is partly based on the growth in SABMiller’s adjusted earnings per share, which includes the effect of currency fluctuations, but excludes exceptional charges.

Last year the adjusted earnings per share figure dropped 6%, reflecting a weakening of currencies against the dollar in many emerging markets in which the group operates. Some 70% of SABMiller’s sales are in developing countries, but its financial reporting is in US dollars.

The currency slide took the fizz out of the latest results. When $721m of exceptional costs were accounted for, group pre-tax profit fell nearly 16% to $4.1bn.

Among the costs were $160m associated with negotiating the £71bn takeover with AB InBev and asset impairments related to underperforming divisions, such as the business in South Sudan. SABMiller was forced to withdraw after a shortage of foreign currency in the country.

The takeover of SABMiller is close to clearing regulatory hurdles in China and the US, after AB InBev offered to sell significant assets of its target. Approval would pave the way for a deal to be completed in the autumn, analysts have estimated.

At that point Clark — who became chief executive just over three years ago — stands to reap the benefit of share awards during his 26 years of employment at SABMiller, giving him a £55m payout in vesting shares and options.

Clark owned 341,886 shares as of June 10, according to the annual report. He also has 1.2-million in share options.

Of the potential payout £33m would be the result of holding shares long term, with the remaining £22m from the vesting of incentive scheme shares, triggered by the change of control at SABMiller, and termination payments. (Financial Times)

•Photo shows SABMiller CEO Alan Clark.

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