Top directors see pay surge by 49%

The Incomes Data Services (IDS) reports that FTSE 100 directors saw their total earnings increase by an average of 49% in the last financial year, and are now averaging £2,697,664 per annum.

Top directors also saw their average bonus payments increase by 23%, from £737,624 in 2010 to £906,044 in 2011.

The increase in total earnings was even higher than the 43% rise for chief executives, suggesting that executive largesse is evenly spread across the board.

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.”

AccountingWEB members were quick to respond, with one commenting

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Comments

Directors pay

rjaxford | | Permalink

It usually appears to be one way; upwards.  I have a friend who is a regional director in a large concern who is taking a £40k salary hit, due to the overall economic situation; but did the Bankers have to repay bonuses when their share prices dropped through the floor?  Or will the Board of BAe take pay cuts commensurate to the reduction in staff they employ following the recently announced redundancies?