Blue-chip bosses given 25pc pay rises

FTSE 100 chief executives have been handed average pay rises of nearly 25pc this year despite the cost of living crunch.

New research from PWC reveals that total pay for bosses at Britain’s bluechip companies climbed by 23pc to an average of £3.9m in the last 12 months.

The rebound was largely owing to bonuses that many executives gave up during Covid, the study said, as well as lower targets set during the pandemic.

It comes amid tense negotiations between management and rank-andfile staff at these companies, with employees pushing back against belowinflation pay rises.

The data will also increase pressure on remuneration committees ahead of next year’s annual meetings season.

Andrew Page, executive compensation leader at PWC, said: “The increase in executive pay and bonuses highlights that FTSE 100 companies were boosted by businesses opening up and demand returning after the pandemic.

“However, looking forward to the 2023 AGM season, higher pay outcomes are likely to be met with greater investor scrutiny, particularly in the context of rising inflation and pay increases across the workforce.”

PWC said pay was now largely back to pre-covid levels as bonuses increased to 86pc of the maximum available, above historical levels.

Meanwhile, the proportion of FTSE 100 chief executives with salary freezes dropped from 43pc in 2021 to just 15pc this year, while only 5pc received no bonus, down from 22pc during the previous year.

Pwc’s report also found that almost 90pc of FTSE 100 companies included environmental, social and governance (ESG) measures as part of the variable incentive arrangements, with a particular focus on diversity and inclusion, health and safety and employee engagement metrics.