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Large companies in the London census are pushing to take advantage of the “change of tone” from investors, increasing the salary of their best managers as part of the Transatlantic War for compensation.
Several FTSE’s largest companies strengthened London Stock Exchange Group and Smith and nephewLast year’s success in providing a shareholder agreement for multi -million dollar salaries is increasing for its best executives, according to investors and advice in the administration.
British American tobacco and compass Group – two of the 15 largest companies on the London Stock Exchange per market capitalization – among those who suggest that they offer their main executive wage contracts this year.
“We will see more changes in wages this year and next,” said Mitul Shah, head of Deloitte’s units advising about the executive salary.
Separately, British abolition Bonus Cap EU has been stimulated by large banks, including Barclays, HSBC and Standard rent Ask the shareholder to approve changes that would increase maximum payments to their main executives if all goals are fulfilled.
Lobbying for a higher salary was prevalent among companies with large American divisions and those who want to get a job from America or retain executives who have the ability to move to transatlantic rivals, according to an executive salary advisers.
“Everything is increasing recognition that global companies in FTSE 100, with global peers, should compete in paying talented executives,” said Ambrose Faulks, Ko-Menader Artemis UK Select Fund.
Median wages of FTSE 100 CEO, without a pension, amounts to £ 4.2 million, according to Think-tank with high salary-113 times more than a middle worker, but far from approximately $ 16 million equivalent to the US Index S&P 500.
Prominent city data such as London’s London Stock Exchange has argued that the UK managers should pay more if Britain should retain talent, increase their competitiveness and prevent public companies to move their entries abroad.
There was a “change in tone” from investors who had previously passed the wages in the United States in the UK, said Richard Belfield of Willis Towers Watson, a committee advisor to their salary structures. “Discussing this issue [last year] He opened the Proxy Agency and investors who did not want to engage earlier. ”
The incentive for a higher salary was concentrated in the 50 largest FTSE companies with international focus, not for all groups with a list in London, he added.
Investors and advisers said companies also faced pressure to pay more in the next level of the role below the executive director to attract and retain talent.
Payment of competitiveness “is a question that extends beyond the level of executive director and seems to increase the salary in all organizations,” said Sophie Johnson, head of management and voting at Royal London Asset Management.
Although the salary of top executives sitting in the committee must be discovered in annual reports, there are fewer monitoring of the next manager’s fee, which is less controversial to increase their salaries and bonuses.
James Harris, a counselor for the Alvarez & Marsal Counseling Counseling, said this in turn leads to “compression of salaries” in the best ranks of the company.
This is a motivating committee to advocate to increase wages for their main executives and main financial officials, because managers who apply directly to these leaders “ran or above them,” Harris said, leaving many companies with a “problem of internal consistency”.
Investment Association alleviated His attitude about the pay executive government last year, providing companies with a bigger free space to adjust the fee to their own circumstances. In return, investors require publication of how companies compare the salaries of their leaders against peers in other groups.
Among those who should have benefited is Tadeu Marroco, Executive Director BAT, who has been paid almost £ 6 million in total fee in total fee and could get up to £ 18.2 million per year Under the new salary contract. In its annual report, the company announced that one-third of its older employees had been from the US in the last three years and that “the rates of vacancies at higher management levels, with prolongation of employment time, were” elevated. ”
Compass Group Director Dominic Blakemore, who was paid almost £ 9.5 million last year, could receive a maximum payment of £ 15.3 million in accordance with the 2025 catering compensation policy. His Chief Financial Director and Chief Operational Director are also fine for higher payments.
