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Cevian calls for higher UK board pay and more share ownership
Cevian says total annual compensation for FTSE 100 non-executive directors should roughly double to about £160,000, with shares retained for five years.
Activist investor Cevian Capital is urging UK-listed companies to raise remuneration for non-executive directors, arguing that higher pay and greater share ownership would help attract stronger board talent and improve long-term performance, according to Hedgeweek citing a Financial Times report.
Cevian, which holds investments including stakes in Smith & Nephew and Pearson, wants boards to increase NED compensation and give directors more direct exposure to the companies they oversee. The investor argues that improving UK corporate performance is the most effective way to support the domestic equity market and wider economic growth.
The proposals come as London faces pressure from takeovers of UK-listed companies and persistent outflows from domestic equities. Cevian notes the average FTSE 100 non-executive director receives around £80,000 a year before tax, and says the role has become more demanding as regulatory and governance responsibilities expanded.
Under Cevian’s plan, total annual NED compensation would rise to about £160,000, including shares directors would be required to retain for five years. The investor also suggests companies could increase packages further by awarding three years of share-based compensation at once, vesting progressively over the following three years, and it points to a large international pay gap versus the S&P 500 and Swiss peers.
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