Veon Limited
VEON Ltd. is a Dutch-domiciled Nasdaq-listed multinational telecommunication services company. It predominantly operates services in the regions of Asia, Africa and Europe.
Overview
We are now over halfway through this year’s main annual reporting season in the UK so it is a good moment to reflect on what the latest remuneration reports tell us about any new trends or developments emerging. At first sight, it appears that the current landscape has not changed a great deal since our last report in March of this year but while many of the same trends persist, our deep- dive into the latest reports has unearthed some less apparent underlying patterns.
Key findings
Uplift in latest salary rises
In the latest batch of company reports, we noticed an uplift in the level of salary increases for staff but also directors.
A number of these high increases can happen every year because executive directors’ salaries, while of course being subject to the same economic forces as other employees, are also exposed to other factors.
Inflation effect not fully felt
Every year we observe some significant increases but in the latest period the depth and frequency of such occurrences felt more widespread.
In the months ahead, now inflation has taken hold, we may see such large salary rises becoming even more widespread and perhaps even larger.
FTSE 100 increases higher in latest year
As the box below illustrates, the latest salary rises in the FTSE 100 are higher than those in the same companies one year ago. It outlines the increase levels at lower- and upper-quartile levels, median and average and, in every instance, the latest year’s figures are higher than the previous ones.
Comparison of FTSE 100 CEO pay ratios in the last two years
In the FTSE 100, the median and average pay ratio in the last period were 81:1 and 95.1:1 respectively, well up on the 54:1 and 70.6:1 found in the same companies in the previous year.
Case studies
Martin Baker Aircraft
Martin Baker make the ejection seats for installation in many of the world’s air forces globally. They remain an ‘old fashioned’ family-owned engineering company despite being the world leader in their field.
Trufin plc
London Team were selected to act as ‘neutral independent advisors’ on the divestment of assets by a major Fund Management Partnership to form a new company: ‘Newco’, eventually TruFin plc, the listed fintech business
Hawk-eye Innovations
A private company with unique sports technology IP, developed in the UK. The IP had wide applications globally, and huge growth potential. The company was acquired by a world-scale corporation
Knowledge Hub
The 2023 UK CEO Value Index - 10-Year Anniversary Edition
This is the 10th anniversary of the CEO Value Index – the CEO Value Index has been published annually since 2012, and aims to provide a unique insight into pay-for-performance. Our database allows us to understand how Remuneration Committees invest...
A significant change in approach to executive pay: Investment Association publishes letter
On Friday 23rd February, the Investment Association (“IA”), whose members collectively manage £8.8trn in assets, has published a letter to members indicating it will launch a major overhaul and simplification of its Principles of Remuneration...
2023 CEO Value Index – Examining the CEO Pay Ratio
We have compared whether there is a correlation between a company’s CEO Pay Ratio and their 2023 CEO Value Index (‘CVI’) score, focusing on those companies that placed in the Top 10 and Bottom 10 of the index.
2023 CEO Value Index and Shareholder Voting
By ranking CEO’s ‘value for money’, and then looking at shareholder voting patterns, we wanted to find out whether shareholders simply focus on how much CEOs are paid, or whether they focus on the value delivered.
Publication of FRC 2024 UK Corporate Governance Code
On 22nd January 2024, the FRC published its much anticipated revised Code of Corporate Governance. We’ve summarised the main changes concerning Executive Remuneration that you should be aware of in the article below
Incentives for Growing Companies - a recap
Last year, we published ten areas for Growing Companies to consider when looking at incentives. Here is a reminder of what was covered.