Pearson has unveiled its final financial results report for 2018, revealing its chief executive received total remuneration of £3.1m last year, including a £1.5m bonus.
As revealed last month, the company had adjusted operating profit of £546m for the 12 months to 31st December, up by 8%, although its sales fell by 1% in the same period.
John Fallon, c.e.o. of the company, received total pay, including bonuses from Pearson’s annual and long-term incentive plans, of £3.1m, up from £1.8m.
Pearson said this was primarily because of the first payout from its 2016 long-term incentive plan for executive directors. Excluding that £1.5m payment, the figure fell by 4% on the previous year. Company c.f.o. Coram Williams’ total was also up thanks to the payments, from £1m to £1.8m.
The base salary for both positions will be increased by 2.2% this year, which the company said was “in line with the average increases for UK employees”.
Fallon’s pay packet follows years of underperformance and anger among shareholders over the company strategy. The publisher has since tried to move further into digital products as sales of legacy goods like US higher education courseware decline. Mr Fallon’s pay had previously not risen past £1.9m.
Alongside revealing its chief executives’ pay, the company admitted there was “still more to be done” following its gender pay gap report released last week. The company stated: “Since publishing our first report last year, a broader Diversity & Inclusion action plan has been put in place, which will keep us focused on tackling this issue in the coming year and beyond."
Elsewhere, the report reveals Pearson made a profit of £96m when it sold 22% of its stake in Penguin Random House to Bertlesmann in October 2017. The company still holds a 25% interest in the publisher.
Pearson chairman Sidney Taurel said it had been a “pivotal” year for the firm as it returned to adjusted operating profit growth for the first time since 2014.
He wrote: “I do not underestimate the scale of the transformation we are undertaking but believe we delivered real and sustainable momentum in 2018. Management continues to faithfully execute on our strategy, further simplifying the company, growing our digital capabilities and investing in structurally growing businesses. Our near-term prospects look increasingly bright and the long-term opportunities remain significant.”