Final salary pension costs for FTSE 100 executives skyrocket

Around 70% of executive pay in FTSE 100 companies is spent funding their final salary pensions, a report has found.

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The report, by actuaries Lane Clark & Peacock, found that benefits earned by workers in final salary pension schemes – few of which remain open to new staff – cost far less as a proportion of pay than those of senior executives.

According to figures from the Office for National Statistics, around 80% of companies with 500+ employees that offer the schemes contribute 15% to 20% of workers’ pay.