Article

Executive pay in top-performing FTSE 250 companies

A sense of ownership

December 12, 2017
| United Kingdom

Jessica Norton, Laura O’Kane, Hazel Rees and Paul Townsend, Willis Towers Watson

This report looks at executive pay in FTSE 250 companies. We examine shareholder returns, executive remuneration frameworks and executive tenure to identify common traits amongst top performing companies and answer the question: what separates the top and bottom performers?

Our research finds that top performers share five key traits:

  1. Leadership stability, founder influence and a sense of ownership
  2. Tailored approaches to incentive plan design
  3. A strong focus on financial performance in executives’ performance measures
  4. A clear pay-for-performance relationship
  5. Strong shareholder support for remuneration policy and its implementation

The full report details each of these five areas, and also provides key takeaways for remuneration committees and reward professionals.