Benefits are more important than salaries for CEOs

Salary
constitutes a minor part of chief executives’ total pay according to SCA’s
interim survey of top pay for The Sunday Times.

Share
options, bonuses, long term incentive plans, pensions and other benefits are
increasingly important parts of the pay packages of chief executives of top
companies.

In
2000, chief executives were paid on average a total of £1.7 million in the 87
FTSE 100 companies covered by the survey, but only £539,800, less than a third,
was salary.

Salaries
increased by 12 per cent, with total packages rising by 17 per cent.

On
BBC2’s The Money Programme tonight, the heads of some of Britain’s leading
institutional investors will condemn the trend of awarding massive bonuses to
executives.

The
£10m package awarded to Sir Chris Gent of Vodafone comes under fire for pushing
up executive remuneration.

John
Plender, chairman of PIRC, which campaigns against corporate excesses tells the
programme, “You know a gravy train when you see it. You can see that board room
pay appears not to be related to performance, that people are being paid huge
rewards while delivering mediocre performance.”

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