Research: High Pay Centre: The Myth of Shareholder Stewardship

A new report by the High Pay Centre has highlighted the extent to which intentions to curb excessive executive pay have all-but failed in recent years.

The High Pay Centre analysed the pay policies of FTSE 100 firms between 2014-2018, and during this time found every pay policy put to shareholders was approved.

This is despite The Enterprise and Regulatory Reform Act (2013) which gives shareholders a binding – rather than advisory – vote on their companies’ executive pay policy at least once every three years.

It finds:

  • Across more than 700 pay-related resolutions voted on at annual meetings over the period, average shareholder dissent was just 8.8%
  • Median levels of chief executive pay climbed to £3.9m in 2017 – an increase of 11%
  • CEO pay is now 137 times the annual salary of the typical UK worker