Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Latest NewsPay & benefits

FTSE 100 chiefs see remuneration packages fall

by Michael Millar 29 Nov 2005
by Michael Millar 29 Nov 2005


FTSE 100 executive directors have, on average, seen falls in their overall remuneration packages this year, according to consultants Watson Wyatt.

This is largely because of increasingly demanding performance conditions imposed on their long-term incentive plans.


The Executive Reward Survey 2005 found that the average basic salary and bonus for a FTSE 100 chief executive have continued to rise this year, by 9.1% and 29% respectively.

The increased bonuses have been paid out this year to reward an average increase in profits last year of 20%. But chief executives’ total remuneration has fallen on average by 7% to £2.1m, because the value of their long-term incentives has in many cases been reduced.


Similarly, the basic salaries and bonuses for other FTSE 100 executive directors have also increased – by 7.8% and 22% respectively – while overall their total remuneration has fallen on average by 18% to £980,000.


Damien Knight, executive reward consultant at Watson Wyatt, said there was a risk that institutional investors may have been too tough in their attempts to ensure executive pay is aligned to shareholder interests.

“Shareholders have understandably been keen to use performance conditions to ensure that the long-term incentives offered to executives are paid out on their actual performance rather than fortunate market conditions,” he said.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“But the performance measures they have imposed have in some cases reduced the real value of the incentives to the executives. The question is: does this leave executives suitably motivated and aligned to shareholders’ interests?”


 

Michael Millar

previous post
Growing number of firms suffer economic crime
next post
Bonus misery set to depress the workforce

You may also like

‘Flawed system’ blocking apprenticeships from young people

18 Sep 2025

Personnel Today Awards 2025 shortlist: Workplace culture (smaller...

18 Sep 2025

Trainee GP who displayed Palestine flag sues for...

17 Sep 2025

Graduates face ‘white-collar’ recession in jobs market

17 Sep 2025

Ben & Jerry’s co-founder quits over Unilever’s social...

17 Sep 2025

Inflation unchanged at 3.8% in August

17 Sep 2025

Tech firms to plough £30bn into ‘AI Growth...

17 Sep 2025

Retirement at risk – why we all need...

17 Sep 2025

Sky to cut 600 jobs as it ‘reshapes’...

17 Sep 2025

MPs reject Lords’ amendments to Employment Rights Bill

16 Sep 2025

  • Workplace health benefits need to be simplified SPONSORED | Long-term sickness...Read more
  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits Live
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise