By Maximilian Clarke
Directors of FTSE100 listed companies have seen pay soar by a half to more than £2.5million, data from Incomes Data Services (IDS) shows.
CEOs saw pay up 43%, suggesting boardmembers are beginning to catch up, and that lucrative pay increases are ‘evenly spread across the board’.
“Britain's economy may be struggling to return to pre-recession levels of output, but the same cannot be said of FTSE 100 directors 'remuneration'.
According to the IDS data, the increase in LTIPs and bonus payments received by FTSE 100 directors more than made up for a modest 3.2% growth in base salary that FTSE 100 directors averaged over the last year.
Steve Tatton says: “The generous remuneration packages that FTSE 100 directors now receive indicates a marked improvement in boardroom fortunes.”
“But with closer scrutiny of boardroom pay expected in the future, remuneration committees will have to make sure that they are able to provide full and thorough justifications for the bonuses awarded.”
“This means that they will have to be much more transparent about how total benefits packages are structured and how performance is measured.”
Total earnings of FTSE 100 directors rose across the board, with the breakdown as follows:
CEOs received an average increase of 43.5% (£3,855,172) Finance directors received an average increase of 34.1% (£2,001,515) All other directors received an average increase of 66.5% (£2,260,033).
Comments Steve Tatton: “At a time when employees are experiencing real wage cuts and risk losing their livelihoods, without further explanation it may be difficult for FTSE 100 companies to justify the significant increase in earnings awarded to their directors.”
“The pay gap between the boardroom and the shop floor does not yet show any signs of closing.”
All data in the IDS Directors‟ Pay Report is taken from the latest available published annual accounts with year-end dates between February 2010 and April 2011.
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