Shareholder rebellions slowing pay rises for chief executives
Salary rises for chief executives of large UK companies are slowing, amid signs that the shareholder rebellion against excessive pay packages is influencing decisions on remuneration.
Total pay growth among FTSE 100 chief executives slowed last year to an average of 14 per cent and a median of 8.5 per cent to stand at £3 million, according to Incomes Data Services, the research group.
This was much lower than an earlier report on director’s pay published in October, which showed an average rise of 43 per cent to £3.86 million for chief executives, IDS said.
If median figures are used – the halfway point between the largest and smallest rise - the October report recorded an increase calculated at a more modest 16 per cent.
Disgruntled shareholders have claimed a number of high-profile victories over pay in recent months, most notably a rebellion against WPP chief executive Sir Martin Sorrell and the resignation of Trinity Mirror chief executive Sly Bailey. – (Copyright the Financial Times Limited 2012)