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Survey Report | Executive Pay Memo – UK

Executive remuneration in FTSE 100 companies – 2021 report

2021 market data report for executive and non-executive directors

By Karen Depoix and Jessica Norton | October 25, 2021

Our 2021 recap of the Annual General Meeting season, plus executive director pay trends and non-executive director fees for companies in the FTSE 100.
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Executive Compensation
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This report provides a final update for the 2021 Annual General Meeting (AGM) season on key pay developments this year. It also sets out an overview of executive director market data and non-executive director fees for companies in the FTSE 100.

  1. 01

    Our report is organised into three sections: The key headlines and trends identified from the 2021 AGM season, including:

    Who changed what?

    We examine trends in policy changes and the driving forces behind these developments.

    What was the impact of COVID-19?

    How were Remuneration Committee decisions and executive remuneration outcomes impacted by the pandemic?

    How did proxy agencies react?

    What were the main areas of contention when it came to proxy agency recommendations?

    What happened at AGMs?

    The change in median AGM voting out-turns and the proportion of companies receiving different levels of support.

    Looking forward

    Our report looks at the remuneration decisions taken by companies with financial year ends from the end of March 2021 onwards to consider forward-looking trends given the continuing uncertainties Brexit, COVID-19 and other macro-economic issues.

  2. 02

    Analysis of market data for executive directors in FTSE 100 companies.

    This section examines market data in the following areas:

    • Salary
    • Benefits
    • Annual bonus
    • Long-term incentive plans (LTIPs)
    • Single figure compensation
    • Shareholding guidelines
  3. 03

    Lastly, we look at fees paid to non-executive directors.

    This section details the fee levels paid to non-executive directors in the FTSE 30, FTSE 50 and FTSE 100. The Chairman is typically paid an all-inclusive fee for all responsibilities, based on company size, time commitment and role responsibilities. Non-executive directors are typically paid a base fee for Board membership, with additional fees for other responsibilities such as chairing a Board Committee.

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Authors


Director, Head of Research and Trends EC&BA GB

Senior Director, European Executive Compensation & Board Advisory Practice Leader

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