The 2024 remuneration disclosures tell two different stories. The latest headline statistics show UK executive pay reverting to the long-run norm following some years of volatility caused by the pandemic, supply chain disruptions, international conflicts and ensuing rises in inflation. Beneath the surface, however, we may be seeing the precursors of significant future change.

Over the last year the UK’s standing among global financial markets has been questioned as investors have seen a number of high-profile companies choose to list in the US rather than London. At the same time, the competitiveness of UK executive pay relative to the US has also become a concern for companies seeking to attract the best talent. Among this year’s AGMs we have seen a number of companies seek to address the concerns about pay competitiveness by introducing innovative new policies that attempt to bridge the Atlantic divide. The response from investors to these more US-style Policies has been mixed with some companies obtaining strong support and others seeing material dissent. In 2025 most UK listed companies will begin the process of thinking about their next triennial binding Directors’ Remuneration Policy vote in 2026 and as part of their preparation will be considering their own competitive challenges and how their next Remuneration Policy should evolve to address these.

Mercer’s UK Board Remuneration Handbook 2024 is an invaluable guide to the key remuneration trends in the current year and a helpful tool in planning the key Remuneration Committee decisions for 2025 and beyond. You are invited to watch our annual webinar in which we presented the results, shared insights from the Handbook and provided high level commentary on the AGM season.