Research: Executive pay: Review of FTSE 100 executive pay packages

Rewards among FTSE 100 CEOs dropped by almost a fifth to £4.5 million a year in 2016, according to findings from the Chartered Institute of Personnel and Development (CIPD) and the High Pay Centre.

Key findings:

• CEO remuneration has fallen by an average of 17%.
• The gap between highest and lowest FTSE 100 pay packages has closed, as companies 'chase the median'.
• Average pay packages of the 25 highest paid CEOs have dropped by 24% to £9.4 million in 2016. Conversely, the 32 lowest paid CEOs in the FTSE 100 have seen an increase in their overall package.
• In 2016, the average pay ratio between FTSE 100 CEOs and the average pay package of their employees was 129:1. In 2015, the ratio was 148:1.

The CIPD and High Pay Centre suggested several reasons for the reduction in remuneration, including subdued pay progression for average workers making it difficult to justify CEO pay growth, political criticism of high CEO pay and a greater focus on corporate governance.