By Marcus Leach

A report by the High Pay Commission released today (Monday) has revealed that the average bonuses for directors at FTSE 350 companies has risen by a staggering 187% since 2002.

The research goes on to show that in 2002 annual bonuses were worth 48% of salary, but that figure has now risen to 90%, although there has been no corresponding rise in share prices.

Deborah Hargreaves, the Commission chairman, said that this data shows it is a ‘myth’ that big bonuses for directors meant companies performed better.

“The evidence exposes the myth that big bonuses and high salaries result in better company performances,” Ms Hargreaves said.

“There has been massive growth in what has been termed as performance-related pay yet no such corresponding leap forward in company performance.

“Corporate governance reforms attempting to link pay with performance appear to have done little more than add to the huge complexity of executive packages, reward schemes and bonuses that make up the pay of FTSE 100 directors.”

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