Several CEOs of the Financial Times Stock Exchange (FTSE) 100 companies earned massive seven-figure salaries in 2017 (the more recently available data), according to the High Pay Centre’s August 2018 report on British CEO pay.
These business leaders drew in healthy salaries; their salaries increased by 23% over the previous year, which itself saw a 17% drop from 2015. The average FTSE 100 CEO earned 5.7 million pounds, according to the study, which was a joint effort with the Chartered Institute of Personnel and Development (CIPD). The study took into account salaries on earnings reports, bonuses, employer pension contributions, and incentives.
Here are the top five highest-paid CEOs of British firms that trade on the London Stock Exchange and are included in the FTSE 100:
1. Jeff Fairburn
Salary: 47.1 million pounds
Persimmon is a British company, headquartered in York, that builds houses. The three main brands under which it builds homes are Persimmon Homes, Charles Church, and Westbury Partnerships brands. Persimmon's chair Nicholas Wrigley, resigned at the end of 2017 over his role in awarding CEO Jeff Fairburn a 128 million pound bonus, not all of which was to be collected that year. Fairburn agreed to return some of the bonus and to donate some to charity.
Fairburn was CEO of Persimmon from April 2013 to November 2018. His father was a motorcycle mechanic in York, and he enjoys Formula One racing.
2. Simon Peckham
Company: Melrose Industries
Salary: 42.8 million pounds
Melrose Industries is a London-based private equity firm focused on buying and improving underperforming businesses. The firm pays for its acquisitions with low levels of leverage and improves performance through capital investment and management changes.
Simon Peckham is CEO of Melrose Industries, a firm that he founded in 2003. Prior to that, he worked for the equity finance division of The Royal Bank of Scotland. Peckham was the highest-paid CEO on this list in 2014.
3. Rob Perrins
Company: Berkeley Group
Salary: 28 million pounds
The Berkeley Group is a Cobham, Surrey-based property development company. It was founded in 1976 as Berkeley Homes. It is made up of six companies: Berkeley Homes, St. Edward, St. George, St. James, St. Joseph and St. William.
Rob Perrins has served as managing director of the Berkeley Group since September 2009. He joined Berkeley in 1994 and then joined the group main board in May 2001.
4. Jeremy Darroch
Salary: 16.3 million pounds
Sky is a London-based British media conglomerate. It is Europe's largest media company and pay-TV broadcaster.
Jeremy Darroch has served as CEO of Sky since December 2007. He worked for Procter & Gamble for 12 years and joined Sky in August 2004.
5. Sir Martin Sorrell
Company: WPP Plc.
Salary: 13.9 million pounds
WPP Plc. (Wire and Plastic Products) is a multinational public relations company based in London. Its numerous advertising companies include IMRB, Ogilvy & Mather, Millward Brown, Grey and Burson-Marsteller.
Sir Martin Stuart Sorrell is a British businessman. After privately investing in Wire and Plastic Products, he became CEO in 1985. He is the longest-serving CEO among FTSE 100 companies. Sorrell was knighted in 2000.
Sorrell was number one on the 2017 list.