KPMG Guide to Directors' Remuneration 2018 published - KPMG United Kingdom
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KPMG Guide to Directors' Remuneration 2018 published

KPMG Guide to Directors' Remuneration 2018 published

The median pay-out under both annual bonus and long term incentive plans has increased for Chief Executives according to KPMG’s latest guide to executive directors’ remuneration in FTSE 350 companies.

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The guide includes an overview of salary, pension, bonus and long-term incentives as well as insights into diversity across the executive population, alongside other current issues affecting remuneration. Additional findings show that: 

  • The median basic salary for Chief Executives rose by 2% in 2018 while one in five received no salary increase.
  • Annual bonus - around a third of Executive Directors in the FTSE 350 received annual bonuses of over 80% of the maximum opportunity.
  • Long term incentives - median awards were 250% and 180% of basic salary for Chief Executives for FTSE 100 and FTSE 250 companies respectively. 
  • Regulatory - the most important change to remuneration rules affecting UK listed companies was the publication of the updated UK Corporate Governance Code in July 2018. The new Code signals a wider remit for Remuneration Committees and envisages a greater role for the use of discretion in over-riding formulaic outcomes.
  • Shareholders - the average votes in favour of the annual remuneration report and policy report remained above 90% across the FTSE 350, despite 2018 being known for some high profile cases.
  • Diversity – only 8.4% Executive Director positions are held by women. Of those, 51% are Finance Directors and 31% are Chief Executives.

Chris Barnes, Partner and UK Head of Reward at KPMG, said: “We have seen a significant increase in media, investor and regulatory pressure bearing down on Remuneration Committees this year. We have also witnessed a growing unease from the investor community when it comes to executive pay with little expectation this trend will reverse in 2019. Against this backdrop, many committees may well be reassessing their policies, both in terms of their complexity and the quantum of reward they may deliver.”

 - ENDS -
 
Notes to Editors:
You can read the full report at this link.
 
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Ed Fotheringham Smith, PR Manager

T: 07920 572490

E: Edward.FotheringhamSmith@kpmg.co.uk

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KPMG Press Office: +44 (0)207 694 8773
 
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