FTSE 100 execs eye move from UK as sterling dive hits pay
July 7, 2017 | Evening Standard
THE fall in the pound since the Brexit vote might be good for exports but it is hitting FTSE 100 bosses in the place they care about most — their wallets.
FTSE 100 directors have seen the value of their pay drop by $133 million (£103 million) over the past year as the post-Brexit fall in sterling hit the competitiveness of their pay packets versus their rivals’ at overseas companies.
So says executive search firm DHR International, which warns of a Brexit brain-drain as top execs look to move to companies that pay in dollars or euros.
DHR International says board remuneration at Prudential has been devalued by $6.5 million since June 2016.
Other FTSE 100 companies which saw large devaluations over that period include Persimmon ($3 million), Schroders ($2.9 million) and Compass Group ($2.9 million).
Frank Smeekes, managing partner, Europe, at DHR International, said: “FTSE 100 executives are starting to sit up and take notice as the weak pound drags down the value of their pay packages versus their peers at US, Swiss and German companies.”
“The average devaluation of board remuneration at FTSE 100 companies since Brexit is north of $1.6 million. That loss in value is hard to ignore. In recent months, we have noticed that some executives are now more open to having a conversation with foreign companies.”