By Cameron Kilmister

UK home to half of the ten highest paid CEOs in Europe

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Five out of the ten highest paid chief executives across the major European countries are based in the UK, according to a new study.

Britain’s CEOs are paid a total of €5.65m each year, ahead of €4.26m in Germany, €3.15m in France, and €2.91m in the Netherlands, according to the Independent.

UK chief executive pay increased 25% between 2013 and 2014, according to the report by the Vlerick Business School’s Executive Remuneration Centre.

For professor Xavier Baeten, expert in reward management, the research shows that we should still question the amount CEOs get paid.

“UK has regained the top spot from Germany confirming the fact that the Anglo-Saxon corporate governance model, which is characterised by more dispersed share ownership, provides CEOs with more power in relation to the board, and leads to higher compensation levels,” he said.

Germany’s chief executives had the highest levels of fixed salaries at €1.32m followed by Netherlands bosses at €1.15m yearly.

In comparison, Britain’s CEOs have a higher proportion of their pay based on performance with 74% of their total compensation coming from both long term incentives (such as shares) and short term incentives (such as annual cash  bonuses).

The findings draw attention to yet another widening gap between top earners and the average UK worker.

Calculations from the High Pay Centre think tank suggested that by January 5, Britain’s top bosses had earned more than the average UK worker gets in an entire year.

FTSE 100 bosses received average total remuneration, including share options, of £4.96m in 2014, according to estimates from the proxy shareholder voting agency Manifest. This equates to a rate of around £1,200 an hour.

A recent research by the Chartered Institute of Personnel and Development (CIPD) found nearly 60% of employees say the high level of CEO pay demotivates them to work.

A further 71% believe that CEO pay in the UK is too high or far too high. Almost half of employees felt  their own chief executive was paid too much.

This entry was posted in Work
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