London Stock Exchange owner to double CEO's salary

Mr Schwimmer is reported to earn double his current maximum package of £6.25 million. Photo: Brendan McDermid/Reuters

London Stock Exchange hotel owner plans to double his chief executive's pay amid fears City bosses are being lured away to wealthy US rivals.

David Schwimmer, chief executive of the London Stock Exchange (LSEG), will reportedly be given the chance to earn double his current maximum package of £6.25m under proposed changes to the group's pay policy.

G Schwimmer, who took over the company in 2018, was paid £4.7 million last year. This includes a base salary of £1 million, plus an annual bonus of £1.4 million and around £2 million in long-term incentives.

The revised salary structure could reportedly increase Mr. Schwimmer's annual bonus to 300 percent of his base salary. increased from 225 pc.

The group, which owns the London Stock Exchange, clearing house LCH and financial market data provider Refinitiv, is currently consulting with major shareholders about the move, Sky News reported.

It comes amid concerns that FTSE bosses' small remuneration packages are hurting the London stock market.

Julia Hoggett, chief executive of the London Stock Exchange, last year warned of a disparity between executive pay in the UK and the US, where bosses typically receive much more generous remuneration. She argued that this «lack of a level playing field» had led to an exodus of companies and talent from the Square Mile.

Ms Hoggett said at the time: «The alternative is that we continue to do nothing while our biggest export becomes skills, talent, tax revenue and the companies that generate it.»

She called for a «constructive debate » between British investors and consultants over the pay of board members to prevent them from leaving for New York.

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Deals for lower pay for British executives have been cited as one of the reasons why the London stock market is is scrambling to attract new listings.

Only 23 companies listed in the UK last year, down 49% from the 45 in the previous year, according to EY.

Representative LSEG said: «The committee periodically reviews executive remuneration arrangements in line with normal corporate governance practice to ensure that they remain fit for purpose and consistent with our ambitious growth strategy.

» This policy will aim to attracting, securing, retaining and rewarding the best talent in a competitive global market.»