British firms need to find £200m to plug a funding gap for the pensions of their top executives, the Guardian has reported.
A survey of FTSE 100 companies by independent financial adviser Hargreaves Lansdown, found the funding gap for some executives was more than £5m and the final bill could be more than £200m for the entire FTSE 100.
The research found Todd Stitzer, the boss of Cadbury, will need another £3.7m to fund his retirement income of £1.2m a year, while Bob Catell of the electricity distributor National Grid will need another £4m to maintain his £1.75m-a-year retirement.
The Pension Protection Fund has calculated that the collective deficit of the UK’s 7,400 final-salary occupational schemes is more than £180bn.
At the other end of the income scale employers, including Barclays and IBM, could face industrial action over decisions to close their final-salary schemes to existing employees as well as new joiners.
