Executive pay increased by £45 million in 2012

FTSE 100 chief executive officers (CEO) were collectively paid £425 million in 2012, up £45 million from 2011, according to annual research by Manifest and MM&K.

The Executive director total remuneration survey 2013, which analysed the latest annual reports of 581 organisations, found the increased payouts were almost entirely due to long-term incentive plans (L-tips), which were up 40% from 2011, a general increase in all share prices, and the fact that L-tips vested in 2012 paid out 67% of the maximum compared to 42% in 2011.

The research also found:

  • The average annual salary of a FTSE 100 CEO was £4.25 million.
  • The top five in 2012 received £12 million less than the top five in 2011.
  • The other 95 CEOs received bigger pay increases, at an average of 17%, than the average, which stood at 10%.
  • Over the past 14 years, total remuneration of the FTSE 100 executives has grown at a much faster rate than shareholder returns.