Yahoo Finance London Stock Exchange owner to double chief executive’s pay
The owner of the London Stock Exchange is planning to double the pay of its chief executive amid concerns that City bosses are being lured to deep-pocketed US rivals.
David Schwimmer, boss of the London Stock Exchange Group (LSEG), will reportedly have the opportunity to earn twice his current maximum package of £6.25m under proposed changes to the group’s pay policy.
Mr Schwimmer, who took the helm in 2018, was paid £4.7m last year. This included base pay of £1m, plus a £1.4m annual bonus and around £2m in long-term incentives.
The revised pay structure could reportedly increase Mr Schwimmer’s annual bonus to 300pc of his base salary, up from 225pc.
The group – which owns the London Stock Exchange, clearing house LCH and financial market data provider Refinitiv – is currently consulting major shareholders about the move, Sky News reported.
It comes amid concerns that small pay packages for FTSE bosses are harming London’s stock market.
Julia Hoggett, chief executive of the London Stock Exchange, last year warned of the disparity between executive pay in the UK and US, which typically compensates bosses much more generously.
She argued that this “lack of level playing field” has driven an exodus of companies and talent from the Square Mile.
Ms Hoggett said at the time: “The alternative is we continue standing idly by as our biggest exports become skills, talent, tax revenue and the companies that generate it.”
She called for a “constructive discussion” between UK investors and advisors about boardroom pay to stop them leaving for New York.
Lower pay deals for UK executives have been blamed as one of the reasons London’s stock market has struggled to attract new listings.
Only 23 companies floated in the UK last year, down 49pc from the 45 listings recorded during the previous year, according to EY.
An LSEG spokesman said: “The committee periodically reviews executive remuneration arrangements, in line with usual corporate governance practices, to ensure they remain fit for purpose and aligned to our ambitious growth strategy.
“The policy will focus on attracting, securing, retaining and rewarding the best talent in a competitive global market.”
