Key trends from the FTSE350 Directors' Remuneration Reports 

Mercer’s analysis of the first fifty Directors’ Remuneration Reports highlights how UK executive remuneration is entering a period of significant change. In particular:

• Year-on-year increases to salaries and levels of incentive payouts remain broadly unchanged; however, strong performance by UK equities has resulted in the value of vested LTIPs, and therefore the single figure of remuneration, increasing significantly
  
• Levels of executive remuneration look set to increase further over time as many of this year’s new policies include significant increases to the quantum of LTI awards, as the largest UK companies try to stay “on par” with US and other global peers
  
• We see continued adoption of hybrid plans although most companies are choosing to stick with a more conventional PSP structure
  
• Many companies are taking advantage of the new flexibility to link bonus deferral requirements to the level of an executive’s shareholding
  
• ESG metrics in bonus plans and LTIPs are falling slightly out of favour with fewer FTSE 350 companies reporting including these for current awards.
  

Our analysis of key trends in the FTSE 350 Directors’ Remuneration Reports can be accessed below.