Importance Score: 35 / 100 🔵
Executive compensation for UK chief executives has escalated at a greater pace compared to their American counterparts, as British companies strive to eliminate the remuneration disparity. This report explores the evolving trends in executive compensation, particularly focusing on FTSE 100 CEOs and their pay rises compared to US executives.
Executive Pay Trends in the UK and US
Recent investigations reveal that the heads of FTSE 100 companies have witnessed an average salary increase of 11 percent thus far this year, outpacing the 7.5 percent observed in the United States.
Despite the faster growth, the total compensation for US executives remains significantly higher. UK chiefs currently earn approximately £4.9 million, while their US counterparts average around £12 million, according to an analysis by ISS-Corporate.
Pressure on British Firms to Increase Pay
Leading British enterprises are facing escalating pressure to augment executive pay packages to avert the emigration of top-tier talent to the United States. For instance, NatWest shareholders recently sanctioned a remuneration package for chief executive Paul Thwaite, potentially valued at £7.8 million annually, a considerable rise from the £4.9 million in 2024.
Conversely, at Standard Chartered, shareholders have been urged to reject a proposed 57 percent pay increase for chief executive Bill Winters, which could elevate his earnings to £13.1 million, from £10.7 million the previous year. This development follows the Government’s decision to abolish EU regulations that imposed limits on banker bonuses.
Notable Executive Pay Proposals
Several other major firms are considering substantial increases in executive compensation:
- GSK: Has proposed elevating CEO Emma Walmsley’s potential compensation to £21.6 million annually, a notable rise from £10.6 million.
- British American Tobacco: CEO Tadeu Marroco could see his compensation increase from £6 million to £18.2 million in 2025.
Pay rises: Research shows FTSE 100 bosses have bagged an 11% pay rise so far this year on average, compared with 7.5% in the US
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