Fat-cat salaries are still being paid to directors

Directors
are still awarding themselves fat-cat salaries, with the average pay increase
reaching nearly 13 per cent last year, a survey says.

The
12.8 per cent rise was about three times higher than the average workers’
increase, The Guardian newspaper’s annual pay survey revealed.

But
it was a reduction on the previous year, which saw a 23 per cent rise.

Nearly
190 directors – all men – were paid more than £1m each last year. The average
pay for a chief executive has hit £600,000, excluding share options and
incentives.

One
of the highest paid was Michael Green, who was ousted as chairman of TV group Carlton
when it merged with rival Granada
to form ITV. He received £9.4m in cash and shares.

In
contrast, average earnings saw a rise of 3.7 per cent, excluding the effect of
City bonuses. The average pay in the UK
is now £24,600, equating to one 70th of the salary of a chief executive.

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By Mike Berry