(Commonwealth_Europe) Shareholder pushback over executive pay at British companies is rising, just as those companies are trying to boost compensation packages to stay competitive on a global scale. So far this year, three times as many UK firms have faced significant opposition from investors compared to the same period in 2024. Data from proxy-solicitation firm Georgeson reveals that from January to the end of May 2025, 16 companies in the FTSE 350 index saw more than 20 percent of shareholders vote against their executive pay proposals—up sharply from just five the year before.
A Deloitte business governance manager at Georgeson reports that the median FTSE 100 CEO pay package rose 7 percent to £4.79 million in 2024, and the pace has only picked up in 2025. Companies are making bold moves. At the London Stock Exchange Group’s annual meeting on May 1, 31 percent of shareholders opposed the firm’s pay report after CEO David Schwimmer earned £7.9 million in the most recent financial year. Unilever also met resistance, with nearly 30 percent of votes cast against a base salary proposal for new CEO Fernando Fernandez, even though it was only slightly lower than that of his predecessor.
Behind this trend is a growing belief among UK businesses that they need to challenge old norms. Following relatively strong support from investors in 2024 and updated guidance from the Investment Association that eased restrictions around executive compensation, many companies feel emboldened. This year, nearly half of the 55 FTSE 100 firms that had published their 2024 financial reports were seeking shareholder approval for new pay policies, according to Deloitte. That’s a notable increase from the year before, with many firms even bringing forward proposals ahead of the typical three-year cycle.
Some of the new proposals are eye-catching. British American Tobacco’s CEO, Tadeu Luiz Marroco, could see his total compensation reach as high as £18.2 million in 2025—triple what he earned the previous year—thanks to a performance-based scheme. Companies argue that these kinds of packages are necessary to compete globally and to deal with what some are calling “pay compression,” where the difference between senior executive and mid-level management pay narrows to the point of hurting recruitment and retention. Deloitte partner Mitul Shah says these proposals are about ensuring companies can secure the right leadership in a tough international talent market.
The broader regulatory environment is shifting, too. The UK government’s decision to maintain the removal of the cap on banker bonuses is seen as one way to help close the gap with the US. Bank of America recently joined several other financial institutions in ditching the post-financial crisis bonus limit. Some major banks are also urging UK regulators to move faster in relaxing rules around deferred bonuses, hoping to apply the changes to 2025 payouts.
These moves follow ongoing calls from business leaders—like London Stock Exchange CEO Julia Hoggett—who argue that rigid pay structures have made it harder to attract world-class talent and have dulled London’s edge as a global financial hub. In the end, performance is likely to remain the key factor. If UK firms can deliver strong results—especially in sectors where they’re going head-to-head with American competitors—investors may be more willing to support larger executive pay packages.
