The recent surge in FTSE 250 takeovers highlights the perception that UK firms are undervalued or poorly managed. Activist investor Cevian Capital proposes doubling non-executive director pay from an average £80,000 to £160,000, with half in stock, arguing that a stronger board can lift corporate value. While such a pay hike is controversial, U.S. non-executives earn three times more, and British firms need expertise like AI that is more readily available abroad.

Equity compensation links pay to performance, yet only 5 % of FTSE 100 groups currently use stock for director remuneration. Board roles in the UK carry high legal risk and scrutiny, so making them more attractive could involve higher pay and better incentives. Chair pay, at a median of £452,000, is more competitive, but growth has lagged behind overall director compensation.

Private equity firms often poach UK board talent because of better stock‑based incentives. Companies fear backlash from proxy advisers and investors wary of excessive payouts, but many compare packages to local norms that may be lagging. Low public share ownership in the UK, compared to the U.S., fuels scepticism of large bonuses.

Increasing equity ownership could foster a more business‑friendly culture, benefiting the broader UK economy.