Executive
pay increases have continued to soar well above average pay settlements over
the last 12 months according to research by consultants New Bridge Street.
A
survey of more than 1,300 executives reveals that the increase in basic salary
for executives in parent companies was 6.7 per cent and 8 per cent for those in
subsidiaries, compared to average pay settlements across the economy as a whole
of 3.2 per cent.
The
research shows that chief executives in parent companies earn £429,000 on
average and their counterparts in subsidiary companies £160,500.
The
study also reveals a continuing pay gap between male and female senior
executives, with men earning £135,000 as opposed to £101,700 for women in
similar positions. Typical bonuses for executives came to 26 per cent of basic
salary.
David
Shammai, of New Bridge Street Consultants, said: "The rate of basic salary
increases for senior executives last year was only slightly lower than in
previous years, despite the slower economy and again it was well ahead of
inflation and average earnings growth."
The
research reveals that executive share option schemes are an important part of
the executive pay package, with 61 per cent of senior executives intending to
provide executive share options in the forseeable future.
The average value of shares optioned last
year to an executive participating in a share option scheme was 100 per cent of
basic salary, up from 81 per cent the previous year.
