FTSE 100 CEO Remuneration Reaches To Pre-Pandemic Levels, PwC Analysis Shows: FT

  • A PwC analysis of the first 50 FTSE 100 companies saw that the 2021 median total remuneration for CEOs jumped 34% year-on-year to £4.1 million, the Financial Times reports.
  • A significant hike in annual bonuses drove the growth as some sectors like banks, broader financial services, and the construction industry saw a post-Covid boom. 
  • PwC saw the jump reflect greater investor scrutiny of targets set in 2022.
  • The median total remuneration for FTSE 100 CEOs reached £4.2 million in 2019 during the pre-pandemic time. 
  • The average 2021 executive bonus was 82% of the maximum payout, beating 44% in 2020 and 66% in 2019.
  • PwC found an average outcome of 46% of the maximum long-term incentive plan in 2021, compared with 67% pre-Covid.
  • Only 17% of FTSE 100 companies had frozen their CEO salaries for 2022, compared with 47% in 2021.
  • The analysis coincided with the AGM season, as investors scrutinize executive remuneration to ensure that companies taking furlough money or cutting dividends do not pay bonuses. 
  • Additionally, Russia’s invasion of Ukraine imposes a severe stagflationary shock, and the Covid resurgence in China once again jeopardizes global supply chains.
  • PwC saw that 86% of companies used ESG measures for 2022 plans, up from 64% in 2021, reflecting regulatory pressure.
  • Photo via Pixabay
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