- 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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