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Latest NewsExecutive payPay & benefits

Executive directors see slow down in their pay rise

by Quentin Reade 25 Oct 2004
by Quentin Reade 25 Oct 2004

Pay rises for executive directors of quoted companies are slowing, according to a new survey.
According to professional services firm Deloitte & Touche, median salaries were up 7.1 per cent last year compared with 7.5 per cent in 2002 and 9.7 per cent three years ago.
Share options are on the wane, used by 83 per cent of FTSE 100 companies compared to 93 per cent the previous year.
However, a recent survey shows the pay gap between boardroom executives and employees is continuing to widen.
In the year to 30 June 2004, the average total earnings received by directors of the UK’s 350 leading firms rose by 16.1 per cent, according to Income Data Services’ (IDS) Directors’ Pay Report 2004.
Yet the report shows the average total earnings of all employees increased by only 4.3 per cent over the 12 months.
The IDS survey found that the directors of FTSE 350 companies today have an average salary of £213 for every £100 of wages paid to them in 1998. By contrast, managers and professionals are getting £127 for every £100 of salary they earned in 1998.
Look out for Personnel Today’s new One Stop Guide to Managing Reward available now. It tackles how to develop pay programmes that support and reinforce business objectives For a copy, call 01371 810433 or e-mail [email protected].

Quentin Reade

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Personnel Today
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