FTSE Firms Increase Executive Pay Amidst Falling Shareholder Rebellions

FTSE 100 companies are increasing executive pay as they seek to remain competitive in the global market for top talent, a trend that coincides with a halving of shareholder revolts over boardroom remuneration this year. Research from Indigo Governance indicates that only four of the 73 FTSE 100 companies that have held annual meetings so far in 2026 experienced pay rebellions, a decrease from eight in the preceding half-year period.

This shift suggests a more favorable stance from investors towards executive compensation. "Shareholder concerns over excessive executive pay have not disappeared, but they certainly seem to have become less widespread," stated Bernadette Young of Indigo Governance. She added that this may reflect "a more sympathetic approach and greater recognition from investors of the need to increase the competitiveness of executive remuneration when competing for talent with higher-paying US businesses."

In 2024, the average remuneration for a FTSE 100 chief executive was £5.5 million. This figure, while substantial, remains less than half the average of £12.2 million paid to the heads of S&P 500 firms in the U.S. during the same year, according to data from ISS Corporate. However, UK-based multinational corporations are actively working to close this gap through increasingly generous compensation packages.

Despite the overall decline in revolts, some companies still faced significant investor opposition. The most notable protest occurred at medical device maker Smith & Nephew, where over 40 percent of voting shareholders rejected its pay policy, which included provisions to increase the CEO's maximum earnings to £9.5 million. Educational publisher Pearson, insurer Beazley, and wealth manager Aberdeen also saw more than 20 percent of votes cast against their executive pay plans. Additionally, nearly 18 percent of shareholders at BP voted against the re-election of chairman Albert Manifold, an event that preceded his dismissal by the company's directors just two months later.