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Personnel Today

Executive pay increases continue to rise

by Personnel Today 14 May 2002
by Personnel Today 14 May 2002

Executive pay increases have continued to soar well above average pay
settlements over the last 12 months according to research by New Bridge Street
Consultants.

A survey of more than 1,300 executives reveals 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 of 3.2 per cent. Chief
executives in parent companies earn on average £429,000 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.

David Shammai, of New Bridge Street Consultants, said: "The basic
salary increases for senior executives last year was slightly lower than in
previous years, despite the slower economy."

The research reveals executive share options remain an important part of the
executive pay package, with 61 per cent of respondents intending to grant share
options in the foreseeable future.

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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.

www.nbsc.co.uk

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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