Investing in the Boardroom: Pay, Alignment and UK PLC Performance
Authors: Dr Richard Belfield, Paul Townsend, Karen Depoix and Harlan Zimmerman
Strengthening FTSE 100 board effectiveness through pay, ownership and commitment
The central theme running through this report is enhancing the ability of FTSE 100 boards to support long-term value creation. While recent efforts to strengthen the UK equity market have focused on reforming market structures and regulation, this paper argues that greater attention should also be given to the effectiveness of the boards that oversee UK-listed companies. Drawing on perspectives from Cevian and original analysis from WTW, the report examines whether the UK's current approach to non-executive director (NED) remuneration, alignment and time commitment remains fit for purpose in an increasingly competitive global market.
The report highlights several notable findings. Median FTSE 100 NED fees increased by just 23% between 2015 and 2025, compared with 38% inflation, resulting in an 11% fall in real terms over the decade. It also shows that more than half of NEDs on FTSE 20 boards are recruited from outside the UK, underlining the increasingly international market for board talent.
WTW and Cevian explore how UK companies can strengthen board effectiveness through more competitive remuneration, greater shareholder alignment via share ownership and clearer expectations around the time directors devote to long-term value creation. The report also introduces Cevian's proposed Enhanced Board Approach and examines how evolving governance guidance may create new opportunities for change.
Read the full report below.
