FTSE 100 stocks to watch as average CEO pay rises

More on:

Image Source: © Warenemy | Megapixl.com

Highlights

  • There has been a hike of 39% in the pay of the CEOs of the UK’s 100 largest companies, as per TUC and High Pay Centre.
  • In 2021, the median average pay of the FTSE 100 chiefs went up to £3.4m, up from £2.5m in 2020.
  • The largest and the second largest paid FTSE 100 paid CEOs are of Endeavour and AstraZeneca, receiving a pay of £16.9m and £13.9m, respectively.

 

Chief executive officers (CEOs) of FTSE 100 companies have witnessed a significant rise in their average salaries. As per a study conducted by the Trades Union Congress (TUC) and the High Pay Centre thinktank, there has been a hike of 39% in the pay of the CEOs of the UK’s 100 largest companies, pushing up the average to £3.4 million.

In 2021, the median average pay of the FTSE 100 chiefs went up to £3.4m. This was higher than the 2020 level of £2.5 million. 2020 was the year when the covid-19 pandemic was on its peak and several company chiefs voluntarily decided to opt for pay cut as they put millions of workers on furlough. The pay of CEOs also outstripped the pre-pandemic 2019 median level of £3.25 million.

                                                      ©2022 Kalkine Media®

In 2020, an average UK CEO used to get paid 79 times more than an average UK worker. This figure has surged now, with the CEOs getting a pay which is 109 times higher than the workers. According to the general secretary of the TUC, Frances O’Grady, the mounting gap between salaries of the bosses and that paid to the staff is a major reason for the escalation of the ongoing cost of living crisis.

While the workers are experiencing the largest fall in their real wages in over 20 years, the FTSE 100 CEOs are being showered with wealth. The workers are worthy of receiving a reasonable share of the wealth they generate but the distorted pay policies have been broadening the pay disparity between the staff and bosses.

O’Grady has urged the government to announce stringent regulations to keep a check on executive pay rise. The new rules should incorporate the representation of workers in the committees that decide the top salaries, as well as elected seats on company boards for the workers. This method is quite common in several countries even now, and it has a record of working very well. O’Grady reportedly said that the UK government should give the same opportunity to its workers too.

According to the latest data, the bonuses of the FTSE 100 CEOs have been hiked to £1.4m on annual basis, in comparison with the average annual bonus of £828,000 in 2020. A bonus was received by every nine out of 10 CEOs. Overall, more than £720m was spent by the FTSE 100 companies on the salaries bestowed upon its 224 top executives. This data is based on the pay disclosures made by firms in their annual reports for 2021.

The rising pay for top executives is driving the cost-of-living crisis further as funds worth millions are being channelized towards filling the pockets of already wealthy executives, while the low- and middle-income employees struggling with rising prices are not being allocated sufficient funds. A more balanced distribution of income is necessary to tackle the ongoing crisis as it would positively impact the economically weaker section while the rich won’t feel much of a difference.

The largest and the second largest paid FTSE 100 paid CEOs are of Endeavour and AstraZeneca, receiving a pay of £16.9m and £13.9m, respectively. Kalkine Media® dives into top 10 FTSE 100 companies based on market cap. 

AstraZeneca plc (LON: AZN)

The shares of AstraZeneca plc were up by 1.53% and were trading at GBX 11,422.00, at 1:18 PM (GMT+1) on Monday. The FTSE 100 firm holds a market capitalization of £174,317.56 million at present and its investors are enjoying a positive earnings per share of 0.08. As of 22 August, the company has offered its shareholders positive returns of 31.61% and 30.82% on year-to-date and annual basis, respectively. Its annual dividend yield stands at 2.2% currently.

Shell plc (LON: SHEL)

The shares of Shell plc were up by 0.36%, trading at GBX 2,256.50, at 1:22 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £163,915.97 million at present and its investors are enjoying a positive EPS of 2.59. As of 22 August, the company has offered its shareholders positive returns of 39.07% and 61.99% on YTD and annual basis, respectively. Its annual dividend yield stands at 3.7% currently. 

HSBC Holdings Plc (LON: HSBA)

The shares of the big-four British bank, HSBC Holdings plc, were up by 0.19%, trading at GBX 537.80, at 1:25 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £107,188.24 million at present and its investors are enjoying a positive EPS of 0.62. As of 22 August, the company has offered its shareholders positive returns of 19.89% and 35.79% on YTD and annual basis, respectively.

Unilever plc (LON: ULVR)

The shares of the prominent consumer goods business, Unilever plc, were down by 0.10%, trading at GBX 4,000.00, at 1:29 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £101,914.76 million at present and its investors are enjoying a positive EPS of 2.33. As of 22 August, the company has offered its shareholders positive returns of 1.33% on YTD basis but its return on annual basis is negative, at -3.30%. Its annual dividend yield stands at 3.6% currently. 

Diageo plc (LON: DGE)

The shares of the leading beverage alcohol business, Diageo plc, were down by 0.73%, trading at GBX 3,931.00, at 1:32 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £90,266.79 million at present and its investors are enjoying a positive EPS of 1.14. As of 22 August, the company has offered its shareholders positive returns of 11.65% on annual basis but its return on YTD basis is negative, at -2.55%. Its annual dividend yield stands at 1.9% currently. 

BP plc (LON: BP.)

The shares of BP plc were up by 0.47%, trading at GBX 449.90, at 1:35 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £84,642.12 million at present and its investors are enjoying a positive EPS of 0.38. As of 22 August, the company has offered its shareholders positive returns of 36.20% and 56.38% on YTD and annual basis, respectively. Its annual dividend yield stands at 4.2% currently. 

Rio Tinto plc (LON: RIO)

The shares of the Anglo-Australian mining business, Rio Tinto plc, were down by 0.65%, trading at GBX 4,879.50, at 1:38 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £61,363.41 million at present and its investors are enjoying a huge positive EPS of 13.03. As of 22 August, the company’s returns on both YTD and annual basis stand in the negative territory, at -0.28% and -6.65%, respectively. However, its annual dividend yield stands at a whopping 11.8% currently. 

British American Tobacco plc (LON: BATS)

The shares of the UK-based cigarette making firm, British American Tobacco plc, were up by 0.13%, trading at GBX 3,470.00, at 1:41 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £78,023.06 million at present and its investors are enjoying a positive EPS of 2.97. As of 22 August, the company has offered its shareholders positive returns of 39.07% and 61.99% on YTD and annual basis, respectively. Its annual dividend yield stands at 3.7% currently. 

Glencore plc (LON: GLEN)

The shares of the commodity trading and mining firm, Glencore plc, were up by 0.01%, trading at GBX 487.20, at 1:46 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £63,605.98 million at present and its investors are enjoying a positive EPS of 0.38. As of 22 August, the company has offered its shareholders positive returns of 30.00% and 57.45% on YTD and annual basis, respectively. Its annual dividend yield stands at 2.3% currently. 

GSK plc (LON: GSK)

The shares of the leading UK pharmaceutical business, GSK plc, were up by 0.07%, trading at GBX 41,426.20, at 1:50 PM (GMT+1) on Monday. The FTSE 100 company holds a market capitalization of £57,967.92 million at present and its investors are enjoying a huge positive EPS of 1.10. As of 22 August, the company’s returns on both YTD and annual basis stand in the negative territory, at -11.15% and -5.81%, respectively. However, its annual dividend yield stands at 6.1% currently.


 

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal