Big chief execs gain pay rise of 168 per cent

Chief
executives of large UK companies have seen their pay rise by 168 per cent over
the past five years, says a new report on remuneration.

The
joint survey, carried out by pay consultancy Independent Remuneration Solutions
and proxy voting agency Manifest, shows pay for CEOs of smaller companies rose
by only 48 per cent in the same period.

The
survey of 800 companies shows the average salary, excluding pensions, of chief
executives of companies turning over £10bn or more last year, was £2.6m. This
was in comparison to £187,000 for leaders of companies turning over less than
£30m.

The
report’s author, IRS director Cliff Weight, said a lack of transparency and
legal obligations had allowed the pay packets of top chief executives to
‘soar’.

IRS
defines remuneration as basic salary, benefits, annual bonuses, and ‘hidden’
amounts on the expected value of long-term shares, share options and
incentives.

The
survey found two-thirds of the pay to chief executives of larger companies came
from performance incentives, some of which were difficult to trace. Less than a
fifth of the pay to CEOs of smaller companies was awarded this way.   

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Weight
called on the Government to force all companies to detail ‘hidden’ payments,
share options, and long-term incentive plans in company reports.

By
Paul Yandall