CEO Pay Climbs to Record in UK But Lags US Increases

The chief executive officers of Britain’s biggest companies received record compensation last year but the slowing pace of increases saw the pay gap with the US widen.

Median pay for FTSE 100 CEOs edged up 2% to £4.19 million from the previous year, research by the High Pay Centre think tank showed. That’s behind the 21% rise seen the year before and also lags the increases received by heads of large US companies, according to a separate study.

It follows calls for UK executives to receive higher compensation to compete with levels seen in the US. Last year, London Stock Exchange CEO Julia Hoggett said restrictions on executive pay were hindering companies’ efforts to attract top talent, as well as undermining the attractiveness of the City of London post-Brexit.

The 2% rise for UK CEOs compares with a 12.5% annual increase in median CEO pay for S&P 500 companies with proxy filings in 2024, according to data provider ISS-Corporate, a division of Institutional Shareholder Services. 

The latest UK increase reflects a small number of companies making large pay awards, rather than big rises across the board, said Luke Hildyard, the High Pay Centre’s director. 

Pascal Soriot, chief executive of drugmaker AstraZeneca Plc, was the top FTSE 100 earner last year after he received a total of £16.9 million. Astra’s CEO has previously said his pay compares unfavorably with the heads of pharmaceutical companies in the US and elsewhere, while one of the drugmaker’s largest shareholders has said he believes Soriot is “massively underpaid.”

Others on the list include Relx Plc CEO Erik Engstrom, who made £13.6 million, and Rolls-Royce Holdings Plc chief Tufan Erginbilgic, who collected a similar amount.

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