Paul Walsh given £80,000 Diageo whisky role

Paul Walsh, former CEO of Diageo, is to remain a key figure in the Scotch whisky industry in an £80,000 a year role funded by the UK drinks group.

Paul Walsh amassed £46m in shares and pensions during his time as Diageo CEO

Walsh, who was succeeded as CEO in June by Ivan Menezes, and who will step down from the board of directors next month, will assume the unspecified role on behalf of Diageo for up to five years.

The drinks group, which saw organic profits rise 8% in 2012, revealed the role in its annual report alongside detailed information on the earnings of Walsh, Menezes and Diedre Mahlan.

Walsh amassed a shares and pension fund of over £46m by the time he stepped down on 30 June, with ordinary shares worth £16.1m, and a pension fund of £18.5m.

His salary last year amounted to £1.2m, ontop of £1.2m in bonuses, although the incoming CEO will have a lower income of £1m.

In a letter to shareholders, Walsh said: “This is my last annual report, having stepped down as Chief Executive on 30 June 2013. To my successor, Ivan Menezes, I wish the very best for the future. To my 28,000 colleagues around the world, I can only express gratitude for the chance to learn from them and work with them over the past 13 years. Finally, to you, our shareholders, it has been an honour to lead this wonderful company on your behalf.”

Walsh will step down from the board on 19 September, but remain in an advisory role to Menezes until June 2014 to “ensure a smooth and carefully managed hand-over”.

Walsh will join contract caterer Compass as chairman to drive the group’s expansion overseas.