Coming soon - The 10th Anniversary edition of the CEO Value Index
This is the 10th anniversary of the CEO Value Index. The Index provides a unique view of the executive pay invested in management talent, and what the shareholders get for their investment. It shows how effective Remuneration Committees have been with their choice of incentive design, and whether executives are “worth it”.
The top performers, those companies making the most appearances in the “Top 10” in terms of CEO Value Index include GlaxoSmithkline (best in class overall), Rio Tinto (runner up) and BAT, Shell and AstraZeneca in Bronze position. These companies are part of a small group of companies who tend to outperform the ‘pack’ each year in terms of the value delivered to shareholders.
Findings
The CEO Value Index has demonstrated remarkable consistency over the past 10 years, providing a rock solid basis for calibrating incentive pay programmes for given levels of performance. That means remuneration committees can now focus more on what is required, and less on achieving 'market pay rates'.
More FTSE 100 companies are delivering less value to shareholders
...the collective performance of all, in terms of ‘value for money’, remains considerably below levels observed in 2016 and 2017.
This year’s index shows significantly improved pay for performance alignment in comparison to 2022
…AstraZeneca stands out: the highest pay-out for a CEO in the last four years, but simultaneously the most value added.
The 10-year edition of the CEO Value Index will be released soon!
