2025 AGM Season so far...

So far, 50 FTSE-100 companies have published their Directors’ Remuneration Report. Around half are putting their remuneration policy to shareholders for approval. Summary takeaways include:

 In the context of revised IA Principles of Remuneration and ISS voting policy guidelines, there are some significant increases proposed to pay opportunity, mainly through the long-term incentive plan. The increases (if approved) would mean the median award for FTSE-100 CEOs will increase from 300% to 375% of base pay, and the rationale largely concerns the need to compete for talent in the global marketplace.

 It is not yet clear how much impact US Executive Orders 14151 and 14173 will have on diversity, equity and inclusion metrics in executive pay for UK FTSE companies. At present, there seems to be a reasonably even split between those maintaining DEI metrics in incentives and those reducing or eliminating them.

 ·         Median base salary increases for executive directors is 3.5%, which is above the median of the wider workforce (3.3%).

·         No changes to median bonus opportunity.

·         Median long-term incentive opportunity has increased as referenced above.

·         15 companies have increased share ownership guidelines, and most of these are in tandem with a policy increase in LTIP opportunity.

 The median annual bonus payout for 2024 is 78% of maximum, and median LTIP payout is 77% of maximum.