Whilst competitive pay is undoubtedly a factor in attracting and retaining talent, it is rarely the sole, or even a major, determinant of a company’s decision to list in a particular market, says Paul Arathoon

The recent moves by some of the FTSE 100’s largest companies, such as British American Tobacco and Compass Group, to enhance their chief executives’ pay packages to look more like US CEO arrangements have reignited the debate on executive compensation in the UK. This trend, which has been encouraged by the London Stock Exchange Group and Smith & Nephew’s recent successful executive pay adjustments, raises important questions about the future of UK business competitiveness and the dynamics between companies and their shareholders.

The argument for increasing executive pay is primarily centered around the ability of UK listed companies to attract and retain top executive talent and enhancing the UK’s competitiveness on the global stage, particularly given London’s well-publicised struggles to win new IPOs in the face of competition from particularly New York.

Prominent figures, including London Stock Exchange boss

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