Executive pay slowdown across EuropeStaff writer ▼ | October 23, 2015
Towers Watson research shows that 64% of Europe’s leading CEOs received no salary increase this financial year1 up from 40% in 2014.
Leaders and workers Towers Watson research
In addition, the expected value of long-term incentive plans also dropped from 135% of base salary to 119% a decrease of 12% from the previous year.
As a result, according to the research, total pay for CEOs including salary, benefits, and all incentive plan pay-outs have remained constant during  with a median total pay figure of €5.4 million.
Richard Belfield said: “In the past year we have seen remuneration committees increasingly making use of both short- and long-term design features to improve the alignment of executive compensation packages.
"The most noticeable change has been the introduction of more claw-back bonuses with many also lengthening the time executives must hold onto their shares. In addition short-term incentive plans now typically include not just profit or income metrics, but also a wider range of non-financial and individual measures.”
The research includes an update on regulatory and tax changes across Europe and indicates a certain convergence of policy around executive compensation.
Towers Watson reports that pay-caps, say-on-pay and greater remuneration disclosure have been introduced in a number of countries, which it suggests is leading to closer alignment between pay and company size by sector, rather than by country. ■