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High Pay Centre briefing: The effect of executive pay reforms

HPC analysis of the first executive pay awards made following Government reforms in 2013

Regulations introduced by the Coalition Government to reduce the runaway growth of executive pay have had little effect, according to new research published today by the High Pay Centre.

Despite high profile shareholder revolts at companies such as Barclays, Astra Zeneca and Standard Chartered, no FTSE 100 company has seen a majority of shareholders oppose either the pay package awarded to their Chief Executive in 2013 or their pay policy in future years.

The High Pay Centre research analysed pay for Chief Executives across the first FTSE 100 companies to report under the new regime, in the final three months of 2013. Average CEO pay awarded in 2013 by the 67 companies covered stood at £4.5 million. Manifest/MM&K reported a figure of £4.3 million for the FTSE 1OO index as a whole in 2012.

The research also found that:

High Pay Centre Director, Deborah Hargreaves said: These figures show that the new regulations are not enough to bring top pay back to a level that is sensible, fair or proportionate. Over the past 15 years, pay for a FTSE 100 CEO has gone from being 60 times the average UK worker to 160 times, without any justification. All workers should share in a company’s success - our economy cannot succeed in the long-term if a tiny group at the top pull further and further away from everybody else.

Notes to editors:

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Posted on 2 June 2014

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