Investors create tool to assess company pay policies with Minerva Analytics data

September 13, 2024

A group of UK pension funds have collaborated with the High Pay Centre to develop a free-to-access online tool that helps investors assess companies’ annual corporate pay policies with the help of data from Minerva Analytics.

The Fair Reward Framework was designed to aid investors, as well as corporates, trade unions and media, in understanding how leading companies are paying their top leaders within the wider context of their business operations.

It was made in collaboration between a group of investors, including the Church of England Pensions Board, Brunel Pension Partnership, People’s Partnership and Scottish Widows.

At the pilot launch, assessments will cover 65 of the FTSE 100 companies, while data available for the full FTSE 100 list is set to be released by early next year.

Companies’ annual corporate pay policies and practices were evaluated using a 30-point framework, which includes indicators such as CEO pay aways, pay gaps and ratios, the results of recent shareholder votes on pay at company AGMs and the extent of trade union coverage.

The FRF Secretariat complied the data for the assessments, coordinating the process with the High Pay Centre and incorporating input from data partner Minerva Analytics.

The data revealed that for nearly two-thirds of FTSE 100 companies, the median CEO pay was £4.1 million with awards ranging from just under £1 million to £17 million.

Meanwhile, the median CEO to median employee pay ratio was 75:1, with the highest ratio reaching 431:1 and the lowest at 13:1.

In addition, the data found that 57% of companies surveyed are accredited living wage employers in the UK and 40% have disclosed their Ethnicity Pay Gap.

Whereas only 22% have provided any evidence of the proportion of their workforce covered by trade union membership or a collective bargaining agreement and just 6% have shared details of any meaningful consultation with their workforce during the executive pay setting process.

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.