The High Pay Centre has this week published its research report on the actions taken by UK listed companies in relation to executive pay during the early part of the COVID-19 pandemic. The research found that 104 of the 216 companies reviewed took measures to reduce executive pay. 78 of these reduced base salaries or cancelled pay rises, while 29 reduced or cancelled bonuses. The most common measure was a reduction in salary of between 10% and 20%.

 

Investor shareholder bodies issued specific guidance on COVID-19, asking companies to show pay restraint. In particular, if dividends have been suspended or cancelled or government support has been received, remuneration committees should consider how to reflect this in executive pay outcomes.

As all businesses, listed or otherwise, now grapple in 2022 with the conflicting pressures of wage inflation and spiralling overheads, the challenge of managing pay reviews for employers in the coming months is only likely to become more difficult.