‘Most chief executives’ in FTSE100 companies reporting full 2015 results so far this year received pay rises in the ‘single figure’ measure of CEO pay, according to analysis from the High Pay Centre. The HPC analysis shows that out of 71 FTSE 100 companies, 40 reported a higher single figure for financial year ending 2015 than the amount reported for FYE 2014.
Stefan Stern of the HPC said:
‘The evidence which is coming directly from companies’ own annual reports is that the 20-year rising trend in top company pay continues unabated . . . The latent power possessed by investors to call a halt to these excessive rewards remains unexercised.’
However, other research suggests that two in five FTSE100 CEOS received a salary freeze in 2015/16 and that the overall median increase was just 2%, the same as in 2014/15. The research, based on an analysis of 47 remuneration reports for 2016, was carried out by PwC, whose reward and employment partner Fiona Camenzuli said:
‘Remuneration committees are continuing to make tougher judgements on pay outcomes and coupled with greater scrutiny of performance targets, requirements to hold shares for longer and malus and clawback provisions, mean executive pay is now harder to earn than in the past.’