The pay packets of FTSE 100 bosses slumped last year as the pandemic forced companies to freeze salary top-ups and reduce bonuses, reports Simon Foy.
The median take home pay for blue-chip chief executives in 2020 fell to £2.85m, down from £3.33m in the previous year, according to Deloitte’s annual FTSE 100 executive remuneration report.
The report said the decline can be attributed to a significant reduction in annual bonus pay-outs, pressure from investors to align executive pensions with rates available to the wider workforce, and voluntary pay-cuts at the outset of the pandemic.
Around one-third of executive directors received no annual bonus for 2020, up significantly from 6pc in 2019.
The research also found that salary freezes were implemented for more than half of FTSE 100 bosses for 2021.
Stephen Cahill, vice chairman at Deloitte, said: “Shareholders were clear at the outset of the pandemic that decisions on executive pay should reflect the wider workforce, investor and societal impact of the Covid-19 pandemic.
“While the vast majority have shown restraint, investors remain focused on pay fairness and will vote against remuneration reports where executives are seen to be insulated from the wider stakeholder impact.”
It comes after a turbulent shareholder season which saw an increase in the number of investors voting against FTSE 100 pay reports. Deloitte said the number of companies receiving less than 80pc of support for their annual remuneration reports more than doubled to 12pc in 2021.