Coming soon - The 2022 UK CEO Value Index

Published annually since 2012, the CEO Value Index aims to provide a unique insight into pay-for-performance. Our database allows us to understand how Remuneration Committees invest in their top executives, and the lessons learned – on pay levels, and performance levels.

As a reminder: the CEO Value Index measures how much value a CEO adds to a company for every pound or dollar they are paid. The Index is a sophisticated methodology, but simple to understand. It can easily be applied by Remuneration Committees to their own decision-making.

CEO Value Index Formula

Total Remuneration and Total Value Added are calculated over a four year period. In the case of the 2022 Index that is from beginning of 2018 through to the end of 2021

Findings

Large companies pay more for CEOs than small companies...
...but the difference is not as great as you would expect. If our assumption is that CEOs should be paid for the value that they add to their company, then smaller companies are paying far more for talent than is warranted

CEOs in larger companies are worth more to their shareholders, pound-for-pound of CEO pay, than CEOs in smaller companies


The CEO Value Index performance varies significantly from sector to sector...

...and, perhaps contrary to prevailing views, Banking CEOs are better value than their counterparts in other similar-sized companies

And many more.

The CEO Value Index 2022 will be released soon!

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As Managing Director, Simon Patterson leads the team at Remuneration Associates (Rem.n), a specialty consulting firm focused on executive pay owned by the professional staff themselves. Formerly Pearl Meyer (London), the team have 35+ years of accumulated experience working together, they are actively engaged as advisors to remuneration committees of some of the largest and some of the fastest growing companies, globally. Mr Patterson and the team consult widely on executive compensation, incentive compensation design, and performance measurement.

Pearl Meyer agreed to divest its London operations on June 17th, 2022. Simon Patterson (Managing Director) and his team now own Remuneration Associates Ltd – an independent consulting firm working with clients around the world, which builds upon the legacy of the London operation.

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