Directors' pay rose by 49% - what are your views on performance-related pay?
Research carried out by the Incomes Data Services (IDS) reveals that FTSE 100 directors have seen their total earnings increase by an average of 49% in the last financial year, and are now averaging £2,697,664 per annum.
IDS say that this increase was even higher than the 43% rise in total earnings for CEOs, which suggests that executive largesse is evenly spread across the board.
FTSE 100 directors also saw their average bonus payments increase by 23%, from £737,624 in 2010 to £906,044 in 2011.
Steve Tatton, editor of the IDS report, said: “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)
What are your views on performance-related pay? What are the incentives that work?
- Does anyone have an old version of Sage for sale? 38 2
- flat rate scheme 2,275 43
- Deferring dividends on paper 99 5
- VAT Query on new build 50 1
- Restriction of trading loss and overlap relief 115 1
- CIC Abbreviated Accounts 133 4
- Family Partnership 215 5
- How to format Co-operative Accounts 46 1
- P11D Car Value 238 6
- Signed accounts for bank 602 12
- NOVA declaration 93 1
- Business valuation advice 701 18
- Auto enrolment: What’s your plan? 1,482 16
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,218 23
- Can anybody recommend any software 270 2
- Stand alone practice management software 2,093 26
- 2011 Self Assessment Tax return form 158 1
- dividend date - whose income is it? 379 5
- What route into accountancy would you recommend? 797 11
- HMRC Postal Delays 442 10