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CEO pay went down in 2016, but why?

Paul Hodgson | September 12, 2017

According to the latest High Pay Centre report on CEO pay in the FTSE 100, on average, FTSE 100 CEO pay has fallen 17 percent, from £5.4 million (U.S.$7.1M) in 2015 to £4.5 million (U.S.$5.9M) in 2016.

This provides stark contrast to previous years. Yes, CEO pay went down after the financial crisis, as might have been expected, but it never happens otherwise. But in the latest round of annual reports, those for fiscal year 2016, pay actually went down.

But wait. That’s average pay, right? Initial responses to the finding were based on the fact that a couple of very high-profile CEOs received pay cuts. Sir Martin Sorrell, CEO of advertising giant WPP, saw his pay package drop from £70.4 million (U.S.$92.9M) in 2015 to £48.1 million (U.S. $63.4M) in 2016. Ramesh Kapoor, CEO at consumer products group Reckitt Benckiser, saw his pay fall by £8.8 million (U.S.$11.6M) to £... To get the full story, subscribe now.