STOCKS | London Stock Exchange Group Plans Multi-Million-Pound CEO Pay Increase

London Stock Exchange Group (LSEG) plans to raise Chief Executive David Schwimmer’s maximum annual compensation by about £2 million under a revised package being discussed with shareholders. According to Sina Finance, the proposal would leave his £1.375 million base salary and short-term bonus of up to three times salary unchanged, while increasing the long-term incentive plan cap from 550% to 700% of base pay. LSEG would also raise his minimum shareholding requirement from six to seven times his salary. If his base salary remains unchanged, his maximum annual compensation would exceed £15 million. The group plans to submit the revised pay policy for a binding shareholder vote next spring. LSEG says high pay is key to retaining executives in a globally competitive industry. Schwimmer took up the role in 2018 and received about £6.5 million in compensation last year. The group’s core business is high-end data and trading services, while revenue from the London Stock Exchange’s traditional operations accounts for a smaller share. The proposal comes as UK blue-chip companies warn that executive pay at home is falling behind that of U.S. peers. Companies have been acquired by overseas rivals or private equity firms and delisted, fueling concerns about the long-term vitality of London’s stock market. The FTSE 100 is above 10,800 and nearing the 11,000 mark; it set an intraday record above 10,900 in July. LSEG has sought to attract high-growth companies to list in London, with limited success, as many opt for the more liquid U.S. market. Some companies and LSEG say close scrutiny of executive pay by investors and the media is one factor behind London’s declining appeal to IPO candidates. The UK government has proposed ending shareholders’ annual vote on executive pay as part of a consultation on easing related rules. Several organizations oppose the proposal, including the Investment Association, which operates the influential IVIS voting advisory service. The association told Sky News that advisory votes on pay are an important accountability mechanism and help align compensation with company performance and shareholder interests. Rolls-Royce and Shell have received approval for substantial pay increases this year, while AstraZeneca and Glencore are discussing revised pay policies. An LSEG spokesperson declined to comment on Wednesday.