British American Tobacco (BAT) is a global leader in the tobacco and nicotine products industry, known for its commitment to innovation and transformation. At the helm of BAT is Tadeu Marroco, the company’s Chief Executive Officer, who was appointed in May 2023. Marroco has been with BAT for over three decades, playing a key role in the company’s evolution and focus on sustainability.
In this blog, we’ll explore Tadeu Marroco’s salary, net worth, and compensation structure. The post is designed for readers who are curious about executive pay and its impact on corporate leadership in the tobacco industry.
About British American Tobacco
British American Tobacco is one of the world’s largest tobacco companies, operating in over 180 countries. The company is renowned for its traditional tobacco products, including cigarettes, but has increasingly focused on reduced-risk products such as e-cigarettes, heated tobacco, and oral nicotine.
BAT’s transformation into a modern nicotine business has been a key focus under Marroco’s leadership. With a market capitalization of over £75 billion as of 2025, BAT continues to be a dominant player in the global tobacco industry.
Who is Tadeu Marroco?
Tadeu Marroco is a seasoned executive with an impressive career spanning more than 30 years at BAT. He took over as CEO on May 15, 2023, after serving in various leadership roles within the company.
Background and Career Journey
- Marroco joined BAT in 1992, starting in finance and gradually moving up the ranks.
- He has held leadership positions at national, regional, and global levels, giving him a deep understanding of BAT’s operations.
- Before becoming CEO, Marroco served as Director of Group Transformation, where he simplified BAT’s structure and accelerated its shift toward reduced-risk products.
- He also served as Regional Director of Europe and North Africa, overseeing both traditional tobacco products and new categories like e-cigarettes.
Vision as CEO
Marroco’s vision as CEO is centered on sustainability and workforce development. He aims to transform BAT into a more modern, responsible company by focusing on innovation and reduced-risk products.
Tadeu Marroco’s Salary Breakdown
Tadeu Marroco’s compensation as CEO of British American Tobacco is structured to reflect his leadership role and the company’s performance. Here’s a detailed breakdown of his salary and incentives:
1. Annual Base Salary
- Marroco earns a base salary of £1.3 million annually.
- This fixed amount forms the foundation of his compensation package.
2. Pension Contributions
- He receives a pension contribution equivalent to 15% of his base salary, amounting to £195,000 annually.
- This is part of BAT’s standard benefits for senior executives.
3. Bonuses
- Marroco is eligible for short- and long-term bonuses tied to BAT’s financial and operational performance.
- In 2024, his total compensation, including bonuses, reached £6.0 million.
4. Incentive Scheme
- BAT introduced a three-year incentive scheme for Marroco, which could significantly boost his earnings.
- If company targets are met, Marroco’s total pay over three years could reach £18.2 million.
Historical Compensation Trends
Marroco’s earnings as CEO reflect BAT’s strong financial performance and commitment to rewarding leadership. Here’s a year-by-year comparison:
- 2023: Marroco was appointed CEO mid-year, earning a prorated salary and bonuses.
- 2024: His total compensation reached £6.0 million, including base salary, pension, and performance-based rewards.
- 2025 (Projected): With the new incentive scheme, Marroco’s earnings could increase significantly if BAT achieves its targets.
Tadeu Marroco’s Net Worth
As of 2025, Tadeu Marroco’s estimated net worth is between £25-£35 million, driven by his earnings and stock holdings at BAT. Here’s how his net worth is calculated:
1. Stock Holdings
- Marroco owns significant shares in BAT, with stock awards forming a substantial part of his compensation.
- The value of these shares has grown alongside BAT’s market performance.
2. Salary and Bonuses
- Over his tenure at BAT, Marroco has earned millions through base salary, bonuses, and pension contributions.
3. Other Assets
- While specific details about Marroco’s investments and assets are not publicly disclosed, it’s likely that his wealth extends beyond his earnings at BAT.
CEO Pay Ratio at British American Tobacco
BAT disclosed that Tadeu Marroco’s pay is significantly higher than the median employee salary, reflecting the disparity between executive compensation and average earnings within the company.
Pay Ratio
- The CEO-to-employee pay ratio is estimated to be 200-250 times the median employee salary.
- This ratio is consistent with trends seen in other global corporations, particularly in the tobacco and consumer goods industries.
Comparison to Other CEOs in the Industry
Tadeu Marroco’s compensation is competitive when compared to other CEOs in the tobacco and consumer goods sectors. Here’s how his 2024 earnings stack up:
- Philip Morris International CEO (Jacek Olczak): Total compensation of approximately $12.5 million in 2024.
- Altria CEO (Billy Gifford): Total compensation of $9.8 million in 2024.
- BAT CEO (Tadeu Marroco): Total compensation of £6.0 million in 2024, with potential future earnings up to £18.2 million.
Marroco’s salary reflects BAT’s focus on rewarding leadership while maintaining competitiveness within the industry.
Factors Influencing CEO Compensation
Several factors influence Tadeu Marroco’s salary and overall compensation package:
1. Company Performance
- BAT’s financial results, including revenue growth and shareholder returns, directly impact executive pay.
2. Stock Awards
- Marroco’s stock awards are tied to BAT’s share price, aligning his interests with those of shareholders.
3. Leadership Impact
- His role in transforming BAT into a modern nicotine company has significantly contributed to his compensation.
4. Industry Standards
- BAT benchmarks its executive pay against other leading companies in the tobacco and consumer goods sectors.
Public Perception of CEO Compensation
Executive compensation often sparks debates, and Tadeu Marroco’s earnings are no exception. While some view his salary as a justified reward for his leadership, others question the ethics of high executive pay, particularly in the tobacco industry.
BAT has maintained transparency in its executive pay policies, emphasizing the performance-based nature of its compensation structure.
Future Outlook for Tadeu Marroco and BAT
As BAT continues to innovate and expand, Tadeu Marroco’s compensation is expected to grow in line with the company’s financial performance. Key factors influencing his future earnings include:
1. Innovation in Reduced-Risk Products
- BAT’s focus on e-cigarettes, heated tobacco, and oral nicotine will drive its growth in the coming years.
2. Global Expansion
- Expanding into emerging markets will create new revenue streams for BAT, further boosting its financial performance.
3. Leadership Longevity
- Marroco’s continued leadership will likely result in sustained growth for BAT, solidifying his position as one of the highest-paid CEOs in the industry.
Conclusion
Tadeu Marroco’s compensation as CEO of British American Tobacco reflects his significant contributions to the company’s success. With a total payout of £6.0 million in 2024 and potential future earnings of £18.2 million, Marroco’s salary aligns with BAT’s performance and industry standards.
While executive pay often raises questions, it also highlights the immense responsibility and impact of leadership roles in global corporations. For those interested in CEO salaries and net worth, Marroco’s journey offers valuable insights into the rewards and challenges of leading a tobacco giant like BAT.
FAQs
- What is Tadeu Marroco’s salary for 2024?
His base salary is £1.3 million, but his total compensation, including bonuses and incentives, is £6.0 million.
- How does his salary compare to other CEOs in the tobacco industry?
Marroco’s compensation is competitive, though slightly lower than CEOs of companies like Philip Morris and Altria.
- What is Tadeu Marroco’s net worth?
His net worth is estimated to be between £25-£35 million, primarily driven by stock holdings and earnings at BAT. - What is BAT’s CEO pay ratio?
The CEO’s pay is 200-250 times the median employee salary.
- What are the key factors influencing his salary?
Marroco’s compensation is influenced by BAT’s financial performance, stock price, and his leadership impact.