British boardrooms are awarding chief executives massive pay increases with minimal investor pushback, marking a dramatic shift from previous years. Smith & Nephew recently doubled Deepak Nath's maximum compensation to $15.3 million, joining other FTSE 100 leaders like Rolls-Royce's Tufan Erginbilgiç and Shell's Wael Sawan who received substantial raises.

This year's annual pay announcements have caused barely a ripple of discontent among investors, contrasting sharply with 2019 when executive pay sparked shareholder rebellions. The Investment Association's relaxed guidance and increased flexibility for boards has emboldened companies to offer more generous packages. Advisers note that international talent costs more, and boards now feel confident awarding bumper pay rises knowing there's little regulatory resistance.

Many FTSE 100 boards point to share price improvements as justification, with the index rising nearly 20 percent in the past year. However, critics argue this creates retention risks and pay disparities. Smith & Nephew's Sybella Stanley warned that failing to match US market peers could make recruiting successors difficult. The trend extends beyond traditional sectors, with WPP offering new CEO Cindy Rose up to £11 million despite the company's share price hitting 17-year lows.