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The average FTSE 100 CEO package has increased by 12% last year from £3.72m in 2021 to £4.15m in 2022, according to a new analysis by Deloitte.
Based on data from the first 55 companies to publish their 2022 annual reports, annual bonuses remained high in 2022 compared with pre-pandemic levels, with a median pay out of 76% of the maximum award.
However, in light of investor guidance, the value of FTSE 100 CEO salary increases is expected to be lower in 2023.
Over 90% have been set below the average rate awarded to the general workforce, with the median CEO salary increase set at 3.5%, compared with a 6% median for the workforce.
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.”
