Business responds to our report on Performance-related Pay
We wrote to the remuneration committee at every FTSE 100 Company - see who responded!
Following publication of the final report of our commission on performance-related pay, the High Pay Centre wrote to the Chair of every Remuneration Committee across the FTSE 100.
We enclosed a copy of the report, showing that massive increases in Directors’ pay over the past two decades were not matched by corresponding increases in company performance.
As a result of the letter, we had constructive discussions with teams from SSE; Burberry; Rolls Royce; Marks and Spencer; Legal and General. In addition, we received letters from BT and Prudential acknowledging receipt of the report.
We have also arranged separate meetings with the Investment Association, who represent the asset managers who manage shareholdings on behalf of investors and have input into the pay policies of the companies in which they invest, and civil servants at the Department for Business Innovation and Skills(BIS). BIS is the Government department responsible for business policy and corporate governance.
Amusingly, our letters to Vodafone and Rio Tinto were returned unopened, with a note saying that the Chair of the Remuneration Committee at each company was ‘not known at this address’ (their respective head offices).
Since 1 January 2017 the average FTSE 100 CEO has earned:
Income inequality in the UK
Wealth inequality in the UK
- Reality Bites - average FTSE100 CEO pay package down 17% on previous year
Political pressure, public disapproval and campaigning all combined to restrain pay at the top in 2016. But what next?
- CIPD/High Pay Centre survey of FTSE100 CEO pay packages 2016
Our joint annual survey of the state of top pay in the FTSE100
- A government which has lost its purpose
High Pay Centre response to the Queen’s Speech – 21 June 2017