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As part of the Trans-Atlantic Remuneration War, companies are pushing to take advantage of the “change in tone” from investors by increasing the salaries of top executives.
According to investors and boardroom advisors, some of the largest companies in FTSE have been encouraged by the success of London Stock Exchange Group last year and Smith & ne last year.
The UK American Cigarette and Compass Group (two of the 15 largest companies on the London Stock Exchange by market capitalization) is one of those who are proposing to improve wage trading this year to its CEO. is.
“We’ll see more wage changes this year and next year,” said Mithul Shah, head of Deloitte’s division, who advises executive pay.
Separately, with the abolition of the UK’s EU bonus cap, large banks including Barclays, HSBC and Standard Charters will ask shareholders to make maximum payments to the Chief Executive if all targets are met. We have asked to approve changes that increase the number.
Higher wage lobbying is common among large US sectors and companies seeking to maintain executives with the option to move from the US or to transition to transatlantic rivals, according to an advisor at Executive Pay. It was.
“We’re looking forward to seeing you in the future,” said Ambrose Faulks, co-manager of the Artemis UK Select Fund.
The median FTSE 100 CEOs, excluding pensions, is £4.2 million, according to the think tank of high-paying centres.
Prominent city figures such as London Stock Exchange boss Julia Hoggett have said that if the UK maintains talent, is becoming more competitive and prevents public companies from moving their lists abroad, then the UK is Executives insist that more should be paid.
There has been a “change in tone” from investors who opposed the UK’s US-style wage package, said Richard Bellfield of Willis Towers Watson, an advisor to the Wage Structure Committee. “The discussion on this issue (last year) opened the eyes of agents and investors who previously didn’t want to be involved.”
He added that the promotion of higher wages is concentrated on 50 large corporations, which have an international focus on 50 large corporations in FTSE.
Investors and advisors said companies face pressure to pay more in the next tier of their CEO’s next role in order to attract and retain talent.
Sophie Johnson, head of governance and voting at Royal London Asset Management, said:
The salary of the top executives sitting on the board must be disclosed in the annual report, but the compensation for the next manager is not much scrutiny, and increasing wages and bonuses is much more controversial. There is none.
James Harris, executive compensation advisor for consultants Alvarez & Marzal, said this has led to “paying the compression” at the top ranks of the company.
This was the motivation to drive higher pay for their CEO and Chief Financial Officers, as managers reporting directly to these leaders “clashing over them or on top of them.”
Last year, the Investment Association eased executives’ stance on pay, giving businesses more room to adjust their pay for their situation. In return, investors are requesting disclosures about how companies benchmark leader payments to other groups of peers.
Among those who benefit include Tadeu Marroco, CEO of Batt, who was paid nearly £6 million in total pay in 2024 and was able to receive up to £18.2 million a year under the new pay transaction. There is. In its annual report, the company said a third of senior hires for the past three years have come from the US, with “up to vacancy rates across senior management levels and longer employment times.”
Last year, Compass Group CEO Dominique Blakemore was paid around £9.5 million last year, but was able to receive payments of up to £15.3 million under the catering company’s 2025 compensation policy. Ta. Its Chief Financial Officer and Chief Operating Officer are also lined up for bigger payments.
