Pay cut

15 August 2018 By Aimee Donnellan Follow @aimeedonnellan

The average CEO pay in the UK’s largest listed companies increased by 11 percent last year, and is now 167 times that of the median worker. That’s in spite of a move by investors to hold boards to account. More frequent votes on pay, and tougher performance targets would help.

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The median pay of chief executives of companies included in the UK FTSE 100 index increased by 11 percent in 2017 to 3.9 million pounds from 3.5 million pounds in 2016, a report published on Aug. 15 by the High Pay Centre and the Chartered Institute of Personnel and Development showed.

The ratio of median pay for FTSE 100 chief executives to that of the median UK workers rose to 167 to 1 in 2017, from 153 to 1 a year earlier. Payments from long-term incentive plans for CEOs of FTSE 100 listed companies were 313 million pounds in 2017, up from 213 million pounds in 2016.

The mean pay of FTSE 100 chief executives, rose by 23 percent in 2017 to 5.7 million pounds, according to the CIPD report. Mean salaries for all workers in the UK increased by 2.5 percent last year to 29,009 pounds according to data from the Office for National Statistics.

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