FTSE 100 companies have increased chief executives' pay by 18% in the past year, with average packages rising to £5.89 million from £3.59 million in 2021, according to Deloitte analysis of 55 major British firms. This surge comes amid a global talent war that has seen US executives command outsized compensation packages, with Elon Musk potentially earning $1 trillion and Sundar Pichai up to $692 million over three years.

Twenty of the 55 companies have reduced the importance of ESG requirements in remuneration policies, while 11 have removed at least one ESG metric entirely. Companies including HSBC, Standard Chartered, Schroders, and BP have already modified executive pay targets. The shift reflects a more rigorous board assessment of whether ESG awards align with business performance and strategy.

The increase in total pay stems primarily from larger potential bonus pots, though fewer executives achieved maximum bonuses. The median annual bonus payout reached 76% of the maximum, down from 78% in 2024. While UK investors show growing acceptance of share incentive awards, the country remains far from the "one-off moonshot awards" common in the US. This trend occurs against the backdrop of shifting geopolitical considerations and regulatory changes under the Trump administration.