FTSE 100 remuneration arrangements face less opposition
- 19th October 2015
- Accountancy & Finance
New research by Deloitte shows that this year, fewer FTSE 100 companies have changed their remuneration arrangements than the year before.
The study found that only 17% of FTSE 100 companies have changed their arrangements in substantial terms. Last year, thirty-five companies implemented new incentive arrangements, but this year only 11 followed suit.
These changes in behaviour have won the backing of shareholders, with 82% of companies gaining more than 90% of votes in support of annual remuneration reports this year; last year's figure was 79%.
Partner in the remuneration team at Deloitte, Stephen Cahill, commented: "This year’s report provides evidence that companies are listening to shareholders. This has led to the overall level of support for remuneration reports remaining steady and high, demonstrated by a median of 97% votes in favour."
A note of moderation seems to have been adopted by companies, especially in larger concerns where 44% of executive directors received no change. The median increase in salaries of 2.2% favourably compared to 2014's 2.5%.
The Deloitte study found that overall, FTSE 100 companies had the backing of shareholders for their remuneration reports - and this year, fewer had less than 80% of votes in favour.
The report also noted that remuneration arrangements were simpler on the whole. This year, 21% of FTSE 100 companies now operate more than one long-term plan, a fall from 29% in the previous year.
Deloitte’s analysis also highlighted that when a low vote supporting remuneration arrangements was recorded, a key issue was the recruitment arrangements of the company.
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