The Rem.n Podcast
Simon Patterson is a managing director of Remuneration Associates (Rem.n) - a remuneration consultancy firm based in London. He is actively engaged as advisor to the remuneration committees of several FTSE 100 companies and consults widely on executive compensation, incentive compensation design, and performance measurement.
The Rem.n Podcast
Are U.S. CEOs paid too much?
The U.S. pays more for executive talent, so what? That’s quite a pill to swallow for the British because a great deal of effort has gone into controlling executive pay opportunity while ensuring it is strongly linked to performance.
Headline figures for CEO pay amongst the largest and most successful U.S. corporations can be staggering.
- Average total compensation amongst U.S. CEOs is 4x the level for their UK equivalent [ISS themselves say that median total remuneration for CEOs in the S&P 500 rose 23% from 2018 to 2022, but over the same period FTSE100 equivalent pay went up a paltry 1.1%. Average pay of S&P 500 boss was $18.3m in 2021, nearly 4x more than that of FTSE 100 CEO at £4.26m].
- Ten years ago the difference was around 2x
- This, despite the fact that short-term incentive pay for UK CEOs between 2004 and 2016 broadly doubled - for the same performance
Yet despite all this it is not difficult to argue that U.S CEOs are ‘worth it’... Listen to find out why.
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https://remunerationassociates.com
