Over recent months, one of the main areas of debate on executive remuneration has been how the approach in the U.K. contributes (or otherwise) to its competitiveness as a place for businesses to list and thrive. Our recently published article: Is the U.K. approach to executive pay broken? delves into how the approach to remuneration could evolve and its impact on the competitiveness of businesses in the country.
While remuneration is just one aspect of the broader discussion, it has played a significant role in shaping the decisions of some FTSE 350 remuneration committees and we have supported a number of companies navigating this challenge. To date, we have seen a greater proportion of FTSE 100 companies taking an "atypical" approach than in the FTSE 250, with six FTSE 100 companies (10%) and six FTSE 250 companies (6%) tabling such Policies respectively. This compares to 3% in the FTSE 100 and 5% in the FTSE 250 in 2023.
While we have only seen one example of a hybrid approach (i.e. combining performance and restricted shares) in the FTSE 100, we have seen an additional three companies tabling such proposals in the FTSE 250, i.e. 50% of those making an atypical change. As we would expect, atypical changes to quantum have been proportionately less prevalent in the FTSE 250.
In addition to these atypical approaches, we have identified several key themes compared to last year. These include:
To delve deeper into the above findings and gain a comprehensive review of remuneration outcomes for 2023 annual report and accounts thus far, download our report.
| Title | File Type | File Size |
|---|---|---|
| Early insights from FTSE 250 Directors’ Remuneration Reports - 2024 | 1.1 MB |
