Boardroom wages increased by almost double the rate of UK average earnings this year, research has found.
An annual report published by accountant Deloitte found that executive directors for FTSE 100 companies saw a 7% increase this year from 3.7% increase in the seasonally adjusted average earnings index.
The average wage increase for a chief executive was lower, at 6.4%, possibly reflecting the fact that more of the remuneration for CEOs is now linked to performance instead of a fixed salary.
Bonus levels for FTSE 100 companies have also increased significantly over the past year, jumping from 75% to 94% of salary.
Carol Arrowsmith, head of remuneration at Deloitte, said the decline of the executive director, by more than 350 positions, was primarily the result of corporate governance guidelines, which require half the board to be made up of independent non-executives.
“This changing shape of the board can be a positive thing, leading to more focused and high quality debate,” she said.
“However, there is also a danger that as the executive element of the board shrinks, the development of strategy is pushed out of the boardroom and into executive committee meetings, leaving non-executive directors with a lack of involvement in key decisions,” Arrowsmith concluded.