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Latest News

Board directors salaries catching up with chief execs

by Personnel Today 21 Nov 2001
by Personnel Today 21 Nov 2001

The basic salaries of executive
board directors at Britain’s largest companies are catching up with those of
chief executives, according to research.

The report by Watson Wyatt
finds that the average salary of a board director is 64 per cent of that of the
average chief executive, up from 47 per cent in 2000.

Salaries for board directors
responsible for areas of the business that generate profit have increased to 65
per cent of those of chief executives, up from 61 per cent in 2000.

Andy Christie, a senior consultant
at Watson Wyatt, thinks the report shows that performance related pay is
becoming increasingly common in the boardroom.

He commented, "What these
figures illustrate is the steadily growing importance of performance-related
pay, particularly for those directors able to directly influence a company’s
performance.

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"For most function heads
the basic salary will typically make up well in excess of 50 per cent of
remuneration. And as the emphasis shifts to performance pay for chief
executives and profit centre directors, the basic pay for function heads is
increasing by comparison."

By Phil Boucher

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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