Research and analysis

Executive pay and investment in the UK

A research paper on CEO performance targets and pay incentives from 2013 to 2019.


Executive pay and investment in the UK


This study explores the relationships between CEO performance targets, the pay incentives associated with those targets, and firm investment for companies listed on the FTSE All-Share index (as of April 2020) from 2013 to 2019. The study has 3 aims:

  • explore the prevalence of different performance targets in UK executive pay contracts, with a view to better understanding the use of different target types and whether they are calibrated effectively to incentivise target achievement
  • examine the evidence for whether CEOs influence firm investment decisions to improve performance against specific targets in their pay contracts
  • examine the evidence for whether there is a systematic relationship between the presence and size of specific performance targets and firm investment

This report has been prepared by PwC for the Department for Business, Energy & Industrial Strategy.

Published 4 June 2021