FTSE 100 CEO annual bonuses remained high in 2022 with a median pay out of 76% of the maximum award, according to a Deloitte report.
This was lower than in 2021 when it was 85% of maximum, but slightly above typical pre-pandemic levels.
The median FTSE 100 CEO package increased by 12% last year – from £3.72 million in 2021 to £4.15 million in 2022 – based on Deloitte analysis of data from the first 55 companies to publish their 2022 annual reports.
Mitul Shah, Partner in Deloitte’s Executive Remuneration practice, said: “Last year we saw a quieter AGM season as pay levels bounced back, following a period of temporary pay cuts and restraint during the COVID-19 pandemic.
“Investors were generally supportive in voting on remuneration reports – despite record high bonus payouts.
“We are expecting a more challenging 2023 AGM season as investors closely scrutinise pay out-turns, with a particular focus on potential windfall gains made by executives on the back of incentive awards granted in 2020 during a dip in the market.”
Shah added: “UK-listed multinational companies competing for both talent and business in the US are increasingly citing the disparity in pay levels between the UK and US, as well as more stringent remuneration governance standards in the UK, as a challenge.
“This is being raised as a contributing factor in the ongoing debate around the long-term competitiveness and success of London’s capital markets.”