A growing number of the UK’s biggest-listed companies want inflation-busting pay hikes for executives in order to compete more effectively with US firms for top talent, a study showed Monday.
The analysis, conducted by business advisory firm Deloitte, was based on data from 55 companies listed on London’s FTSE 100 index and who have published 2023 annual reports.
Deloitte found about one third of those companies are seeking shareholder approvals for new binding remuneration policies.
More than half are looking to “significantly increase incentive levels and/or introduce more innovative pay structures,” it added.
“We are seeing an increase in large, global FTSE 100 companies moving forward with more radical pay proposals this year,” Deloitte partner Mitul Shah said in a statement outlining the research.
“Many of these companies have a significant US footprint and cite the disparity in pay levels between the UK and US… as a challenge when competing for and retaining senior talent in a global marketplace.”
The median pay package for chief executives of FTSE 100 companies climbed four per cent last year to £4.5 million (US$5.6 million), the study revealed.
Among the biggest British companies on the FTSE 100 are energy group BP, banking giant HSBC and consumer-goods multinational Unilever.
