The Covid pandemic has played a role in executive pay levels sliding back this year at top listed firms in Britain, according to a study published Monday by PwC.
The report found median executive remuneration had fallen by around 9 percent at FTSE 100-quoted companies compared to last year.
That compares with a 20 percent drop the same company showed in a September report into salaries of CEOs of firms listed on the broader FTSE 250 index.
At the same time there is a growing expectation, notably among shareholders, that pay should be linked to an extent to a company's efforts to become greener and more socially responsible, the report found.
After analysing the data PwC found "2021 remuneration decisions demonstrated restraint by remuneration committees, with: A 9% reduction in median total single total figure of remuneration for FTSE 100 CEOs," to a median of £2,940,000 ($3.9 million) in 2021 compared to £3,247,000 in 2020."
In addition, "separate analysis shows the trend in the FTSE 100 towards the inclusion of environment, social and governance (ESG) measures as part of variable incentive arrangements has continued.
Almost 60 percent of FTSE 100 companies now include ESG measures as part of their executive incentive plans, with 58 percent of those firms linking ESG measures to executive pay, the report found.
"Just under half of companies (46%) had an ESG measure in their annual bonuses for 2020.
PwC noted that shareholders are increasingly exercised by the need for more environmental awareness as firms prepare for new reporting regulations around their plans to reach net zero emissions.
In May, several British unions made an appeal on pay to investors urging them to tackle the issue of boardroom pay, noting huge discrepancies in wage levels between bosses of large firms and employees much further down the ladder.
According to the High Pay Centre, a boss with an FTSE-100 company receives 109 times more than those on the lowest salary rung at the same firm.
