Pay British bosses more 'or jeopardize London's global status'

LSEG chief David Schwimmer says executive pay 'lies elsewhere'; in the US Photo: Chris J. Ratcliffe/Bloomberg

The UK should consider copying US-style pay packages or risk losing its status as a global financial centre, the head of the London Stock Exchange (LSEG) has said.< /p>

David Schwimmer said British investors should allow CEOs to earn more to stem the exodus of companies from the London market and help attract the best talent.

Mr. Schwimmer said: “When you look at compensation standards around the world, the US is in a different place. This is an issue that companies competing globally with their headquarters in London must consider.”

The lack of new listings in London has raised concerns about whether the capital can compete with the US. and European competitors.

Last year, 23 initial public offerings (IPOs) raised less than £1 billion on the London market, a low point for the exchange.

Companies that were once listed on the London Stock Exchange (LSE) are also leaving, with Tui moving its primary listing to Germany and CRH to New York. Company owner Paddy Power Flutter also said he plans to move to the US.

Lower levels of executive pay in the UK have been blamed for the London stock market's slump, with many investment advisers and fund managers fighting back. sign generous remuneration agreements.

Mr Schwimmer suggested wages were a key factor holding back the London stock market. He said: «When we want to attract talent, when we want to retain our employees, we need to make sure that we provide a competitive offer in light of this global competitive environment.»

Mr Schwimmer himself is reportedly set to receive a US-style salary after LSEG's board asked investors to double his income.

The US-born chief executive was paid £6.25m last year He declined to comment on his remuneration but admitted that LSEG had to pay higher wages to attract the best of the best.

His comments come from Julia Hoggett, who runs the stock market on a daily basis and reports to Mr Schwimmer, and last year also warned that lower wage levels were holding London back.

Ms Hoggett said that in matters pay «lacks a level playing field.»

Mr Schwimmer said 2024 would be a better year for new listings, but said there was «no complacency» on the issue. He said: “I expect the number of IPOs this year to be higher than last year. Last year was a bad year for IPOs around the world.»

LSEG is best known as the owner of the 220-year-old London Stock Exchange, but it derives most of its income from data.

The group has 45 000 clients and sells software to 99 of the world's 100 largest banks and 75 of the world's leading fund managers.

The FTSE 100 group reported revenue growth of 8.3% to £8 billion in 2023 and adjusted operating profit growth of 7.9% to £2.8 billion.