Research: Executive pay in the FTSE 100
This year’s executive pay report shows a fall in mean and median CEO pay. The High Pay Centre and Chartered Institute of Personnel and Development (CIPD) hope that this is a sign that boards are becoming more mindful of stakeholder expectations on top pay, and that stakeholder scrutiny is improving.
- Median and mean pay packages have dropped since last year’s report and median pay is now at its lowest level since 2010.
- The gap between the highest paid executives and the rest of the workforce has narrowed. However, the median FTSE 100 CEO reward package is still 117 times bigger than that of a UK full-time worker on a median salary of £29,574.
- The single figure pay of CEOs consists of base salary, bonus, long-term incentive plans, benefits, pension or pay in lieu of pension. If this single figure is ranked from the highest to the lowest amount, the single figure in the middle (the median) is £3.46 million – 13% lower than the median recorded last year.
- The report also looks more broadly at the FTSE 250. Median single figure pay of FTSE 250 CEOs has remained relatively steady over the past three years, from £1.58 million in FYE 2016, up 2% to £1.61 million in 2017 and down 2% to £1.58 million in 2018.
Click below for further in-depth analysis of the findings, including details on the disconnect between CEO pay and employee pay, CEO pay and performance, and the effects of shareholder dissent on CEO pay.