London Stock Exchange boss set for multi-million-pound pay rise despite listings slump

The boss of the London Stock Exchange Group is in line for a multi-million-pound pay rise despite a drop off in new listings and fears over the future of its flagship bourse, according to reports 

LSEG, the owner of the London Stock Exchange, is consulting with shareholders about a new pay packet for its chief David Schwimmer that could almost double his current pay, Sky News reported today.

Schwimmer reportedly made around £4.7m last year including a base salary of £1m, a £1.4m annual bonus and around £2m in long-term incentive awards.

The proposals could see his annual bonus opportunity increase from 225 per cent of his salary to 300 per cent, Sky News reported, citing unnamed sources. The pay rise has been communicated to around 100 investors during private discussions and the response had been roundly positive, according to the report.

However, the move is likely to irk many in the Square Mile as the London Stock Exchange grapples with a slump in listings and a flood of firms towards New York.

Schwimmer has overseen a period of bumper growth for the parent organisation since joining in 2018 and has transformed the firm into a data and analytics behemoth. Shares in the firm have grown more than 120 per cent since the end of that year.

However, fears have grown over its flagship exchange, which now makes up around only three per cent of revenue for the group. Just 23 new firms listed on the market last year, a 49 per cent slide from the 45 registered in an already quiet 2022, EY found in its latest IPO Eye report.

A London Stock Exchange spokesperson said: “the remuneration committee will present a new policy to shareholders in 2024” as it had detailed in a report last year.

“The committee periodically reviews executive remuneration arrangements, in line with usual corporate governance practices, to ensure they remain fit for purpose and aligned to our ambitious growth strategy,” they added.

The pay rise also comes amid a contentious debate, led by London Stock Exchange chief Julia Hoggett, over the pay packets of UK executives.

In May year, Hoggett said the UK needed a “constructive discussion” on pay to stop top bosses fleeing to New York.

The LSEG spokesperson added today that the new pay policy proposed to investors “will focus on attracting, securing, retaining and rewarding the best talent in a competitive global market.”