It could be unfastened change to Elon Musk, the world’s richest man, who has simply secured a £22 billion bundle at his Tesla electrical automobile maker. However make no mistake, the £45.4 million bonanza scooped by Peter Dilnot at aerospace big Melrose units a brand new mark for high pay at FTSE 100 companies.
Dilnot and three different senior executives hit the jackpot after a controversial share-based bonus scheme agreed 5 years in the past paid out in full.
Their bonanza stands out in our annual survey of FTSE 100 boardroom pay that confirmed the full taken dwelling by high bosses exceeded £500million for the primary time.
They netted a mean of £5.5million every in 2024, up 11 per cent on the earlier 12 months – and greater than twice the tempo of common earnings development.
The payouts have prompted a surge in protests by shareholders at companies the place the awards are deemed extreme.
The largest revolt got here at Melrose the place nearly two-thirds of them lately rejected the pay deal in probably the most severe shareholder revolt seen up to now this 12 months (see desk under).
Within the cash: Melrose’s Peter Dilnot is definitely the best-paid boss within the FTSE 100
Melrose stated it took the snub ‘very critically’ and would ‘contemplate the suggestions acquired’. ‘The board has set a brand new remuneration coverage, absolutely aligned with FTSE 100 friends’, a spokesperson added.
It isn’t simply at Melrose that share homeowners are kicking up a fuss over ballooning boardroom pay.
The variety of vital shareholder protests has greater than doubled up to now this 12 months in contrast with a 12 months in the past, with 11 FTSE 100 corporations seeing revolts of greater than 20 per cent, in keeping with analysis agency Indigo Governance.
Many of the pushbacks had been over government pay.
At Centrica 40 per cent of buyers voted in opposition to the British Fuel proprietor’s pay report (see desk).
Chief government Chris O’Shea, who took dwelling £4.3 million, stated final 12 months it was ‘inconceivable to justify’ his pay whereas prospects had been struggling to pay hovering power payments.
Corporations are obliged to report again to shareholders inside six months if greater than a fifth of share homeowners oppose a pay plan below guidelines to curb so-called ‘fats cat’ pay launched when Theresa Might was Prime Minister.
The thought was that ‘naming and shaming’ companies would curb government extra.
As a substitute, boardroom pay has continued its inexorable climb. For some that is nonetheless not sufficient as they want to enhance the utmost payouts that bosses can earn. For instance, Tadeu Marroco at tobacco big BAT may see his pay treble to £18 million if efficiency targets are hit, whereas Emma Walmsley at medicine big GlaxoSmithKline may double hers to £22million.
London-listed corporations more and more examine themselves with their US friends, the place rewards are greater and tolerance of sky-high bonuses greater.
What that argument conveniently overlooks is that many US corporations are higher run and make extra revenue than their UK counterparts.
And crucially, many chief executives of US corporations mix the function with that of chairman, that means they’ve extra duty – and extra pay.
Cash switch agency Smart lately adopted within the footsteps of plant rent big Ashtead, playing group Flutter and Tarmac-owner CRH in transferring their major inventory market itemizing to New York to safe greater valuations. Even medicine big AstraZeneca and oil titan Shell have flirted with the thought, although the London market acquired a lift final week when miner Glencore deserted plans to go away the Metropolis.
Bernadette Younger, director of Indigo Governance, says the development of London-listed companies to look enviously throughout the pond is ‘undoubtedly a priority for the financial system and British enterprise’. However she provides: ‘Extreme ranges of government pay may be arduous to justify at a time when lower-paid colleagues inside a enterprise could also be scuffling with the price of dwelling.’
Cashing in: Centrica boss Chris O’Shea
Melrose accomplished a doubtful hat-trick by additionally coming high of the pay hole league, which measures the distinction between what a boss earns and what their agency pays a typical employee.
Astonishingly, Dilnot was paid 1,112 instances greater than the £53,000 acquired by the common Melrose worker (see left).
It means he made extra in a number of hours than the remainder of his workforce is often paid all 12 months.
On common the Excessive Pay Centre think-tank reckons high chief executives are paid 113 instances the median full-time employee’s pay of £37,430.
A few of the largest pay gulfs are in retail, a sector the place low wages are widespread and the cost-of-living squeeze is keenly felt.
Subsequent, M&S and JD Sports activities had been focused by a coalition of buyers managing over £1 trillion in property at their annual conferences this 12 months.
Led by marketing campaign group ShareAction, the companies had been urged to reveal what number of of their employees and contract employees had been paid under the true dwelling wage of £12.60 an hour.
In every case a big minority of share homeowners voted in favour of the truthful pay decision. Ruan Opie-Meres of ShareAction stated: ‘All three corporations have signalled a willingness to enhance their transparency and proceed to speak.’
Extra analysis supplied by Anne Ashworth and Simon Kupfer
GSK boss Emma Walmsley remains to be highest paid feminine
Regardless of struggling a £2 million pay drop, GlaxoSmithKline’s Emma Walmsley is once more the highest-paid FTSE 100 feminine boss.
However the drug big’s chief government might be in line to double her pay to nearly £22 million below a deal to align it extra with US friends similar to Moderna and Merck.
Main the best way: Regardless of struggling a £2 million pay drop, GlaxoSmithKline’s Emma Walmsley is once more the highest-paid FTSE 100 feminine boss
Walmsley has led GSK since 2017 and the group, which is understood for its most cancers medicine and vaccines, employs 65,000 employees.
This mother-of-four can also be on the board of tech big Microsoft and was made a Dame in 2020 for her contribution to the pharmaceutical trade.
At quantity two within the pay stakes is Aviva’s Amanda Blanc. She has been on the helm of the insurance coverage big since 2020, having lately led the takeover of Direct Line.
She additionally sits on the board of BP and performed a key function within the current appointment of its new chairman.
Blanc’s pay has attracted criticism however nothing compares to the row over water bosses’ pay.
The 2 largest suppliers are run by ladies – Liv Garfield at Severn Trent, who received £3.3 million, and Louise Beardmore of United Utilities, who received £1.7 million.
In one among its final acts earlier than being scrapped, regulator Ofwat slapped bonus bans on six suppliers, together with United, due to their air pollution document.
It means Beardmore is not going to obtain a £417,000 bonus that she was awarded, and which is included in our pay figures.
Anne Ashworth
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