FTSE-100 executive pay down

CEO pay has fallen this year in the FTSE-100, the stock market index of London’s largest publicly traded companies, according to a survey by consultancy PwC on Monday.

Now that the season for shareholders’ meetings, which validate compensation plans, has come to an end, PwC revised their votes and noted a 9% cut in the median pay of the 100 executives of the FTSE index, to 2.94 million this year. against 3.25 million last year. year. In addition, 28% of the FTSE-100 CEOs have not received a bonus this year, compared to 14% last year, and the salary of 45% of CEOs has been frozen – slightly less than in 2020 (52%%).

At the same time, PriceWaterhouseCooper (PwC) notes that executive pay is increasingly linked to social, governance and environmental (ESG) goals, meaning 58% of FTSE-100 companies link executive pay to ESG measures that are included in the targets to be met and determining their wages, compared to 45% last year.

Compensation disputes for executives

In addition, the PwC survey finds that executives are more critical than before about executive remuneration and less unanimous in their vote on remuneration plans. in 2022, “we expect the same moderation” Comments Phillppa O’Connor, Director of Compensation and Employment at PwC, who notes that there is more protest among shareholders than in previous years against the measures proposed by the boards of directors, especially on executive compensation. The pharmaceutical laboratory AstraZeneca only managed to validate the project with 60% of the votes this year to raise the ceiling of the remuneration of the boss Pascal Soriot and the shareholders of the mining giant Rio Tinto had the majority of the reward that was awarded to the former general manager was awarded rejected .

“Our research shows that 28% of FTSE 100 companies” – including the banks HSBC and Barclays, the oil companies Royal Dutch Shell and BP, or the distribution giant Tesco – have measures linking executive pay to decarbonising their operations, adds Phillppa O’Connor.

In May, several British unions called on investors to act at general meetings to narrow the wide pay gaps at large companies in the UK. According to the High Pay Center, an FTSE-100 company boss earns 109 times more than the lowest-paid employees.

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