A PwC analysis of the first 50 FTSE 100 companies saw that the 2021 median total remuneration for CEOs jumped 34 percent year-on-year to £4.1 million, the Financial Times reports.
A significant hike in annual bonuses drove the growth as some sectors like banks, broader financial services, and the construction industry saw a post-Covid boom.
PwC saw the jump reflect greater investor scrutiny of targets set in 2022.
The median total remuneration for FTSE 100 CEOs reached £4.2 million in 2019 during the pre-pandemic time.
The average 2021 executive bonus was 82 percent of the maximum payout, beating 44 percent in 2020 and 66 percent in 2019.
PwC found an average outcome of 46 percent of the maximum long-term incentive plan in 2021, compared with 67 percent pre-Covid.
Only 17 percent of FTSE 100 companies had frozen their CEO salaries for 2022, compared with 47 percent in 2021.
The analysis coincided with the AGM season, as investors scrutinize executive remuneration to ensure that companies taking furlough money or cutting dividends do not pay bonuses.
Additionally, Russia’s invasion of Ukraine imposes a severe stagflationary shock, and the Covid resurgence in China once again jeopardizes global supply chains.
PwC saw that 86 percent of companies used ESG measures for 2022 plans, up from 64 percent in 2021, reflecting regulatory pressure.
