TIt comes as pharmaceutical group AstraZeneca last month cemented chief executive Pascal Soriot’s place as the highest-paid FTSE 100 company leader by increasing his pay by £17m, up from £15.3m a year earlier. It was a shocking moment. This award brings the total amount earned since joining in 2012 to £137 million.
This angered corporate governance experts, but Mr. Soriot’s generous compensation was only a fraction of what he would take home at some of America’s largest companies. Sundar Pichai of Google’s parent company Alphabet is the highest-paid boss on the U.S.-based S&P 500 index, with a paycheck of $226 million in 2022.
This gap is being used to fuel concerns about London’s ability to attract and retain global talent and to strengthen demands in boardrooms to increase executive pay to compete with Wall Street-level salaries. There is.
There is growing concern in the city following a series of defections in recent years. Top executives went across the Atlantic to rival companies, and London-listed companies moved to U.S. stock exchanges. With more money and less shareholder oversight, companies have more control over compensation systems.
“Anecdotally, this competitiveness issue has been a topic of discussion for many years,” says Andrew, who speaks on behalf of pension fund managers and other large shareholders as head of industry body the Investment Association.・Ninian said. “But in reality, we are hearing more and more cases where companies are having a hard time finding the right talent and competing for talent.”
For example, medical device maker Smith & Nephew lost chief executive Namal Nawana in 18 months after a 2019 scandal over demands for high pay commensurate with his U.S. peers. The company reportedly considered moving to the US, where it would be easier to increase his £6m package, but scrapped the plan and Mr Nawana resigned.
Source: www.theguardian.com
