FTSE 100 companies witness a substantial increase in shareholder uprisings, with a doubling occurrence compared to previous years.
In a significant development, shareholder rebellions have seen a notable increase at FTSE 100 companies, primarily targeting excessive executive pay packages[1]. This trend was evident in the first half of 2025, with the number of pay revolts more than doubling compared to previous periods.
The heightened dissent reflects growing concerns among investors about the scale of CEO compensation packages in relation to company performance and broader economic conditions. Factors contributing to this surge include rising CEO pay levels, widening pay ratios, and increased investor activism and governance scrutiny[2][3].
The median CEO pay package in FTSE 100 companies rose by 7% to approximately £4.79 million in 2024, fueling shareholder dissatisfaction[3]. Despite some slight improvements, the pay ratio of CEOs to lower-ranked employees remains extremely high, around 71:1, which continues to provoke criticism and demands for restraint or mechanisms such as a ‘maximum wage’[2].
The trend is evident in several high-profile cases. For instance, engineering giant Melrose Industries saw two-thirds of shareholders vote against excessive executive pay[1]. Other companies like Unilever, Taylor Wimpey, InterContinental Hotels Group, and London Stock Exchange Group have also experienced shareholder rebellions over executive pay[1].
It's important to note that shareholder votes on issues such as directors' remuneration are largely non-binding, meaning businesses are not legally obligated to abide by the outcome[4]. However, Bernadette Young, co-founder of Indigo, stated that boards should proactively engage with shareholders and advisors to ensure they have not misread investor sentiment and are not forced into embarrassing climbdowns or providing high-profile justifications for their actions[4].
One notable example is British Gas owner Centrica, which suffered a revolt from nearly 40% of investors over its compensation plans[1]. As the trend continues, companies across the index, including Melrose Industries and Centrica, may be compelled to reconsider their remuneration policies to maintain shareholder confidence and social license to operate[1][2][3].
References: [1] Financial Times, "FTSE 100 pay revolts double in first half of 2025," 1 July 2025, https://www.ft.com/content/48f1c74a-29d6-4f9c-a0e6-2784c7345b59 [2] High Pay Centre, "The pay ratio: understanding the new requirement for FTSE 350 companies," 2024, https://highpaycentre.org/the-pay-ratio-understanding-the-new-requirement-for-ftse-350-companies/ [3] The Guardian, "FTSE 100 bosses paid 7% more last year, despite economic uncertainty," 1 March 2025, https://www.theguardian.com/business/2025/mar/01/ftse-100-bosses-paid-7-more-last-year-despite-economic-uncertainty [4] The Telegraph, "FTSE 100 bosses face shareholder revolt over pay," 1 July 2025, https://www.telegraph.co.uk/business/2025/07/01/ftse-100-bosses-face-shareholder-revolt-over-pay/
In light of the increased shareholder protests, personal-finance investors are closely examining the finance sector, expressing concerns about the escalating executive compensation packages and their impact on business performance. This trend, as observed in FTSE 100 companies, has seen a significant surge in personal-finance-related activism, with investments playing a crucial role in influencing corporate governance.
