The UK directors in the FTSE 250 – the biggest 250 companies outside the FTSE 100 – have a long way to go to catch up with their more affluent colleagues, consultancy KPMG’s Survey of Directors’ Compensation 2006 showed.
The current average basic salary for a UK chief executive (CEO) in FTSE 250 companies is £415,000, almost £300,000 less than their colleagues in FTSE 100 companies.
Finance directors in FTSE 250 companies typically earn £242,000 – £164,000 less than their FTSE 100 peers.
Salary increases at FTSE 250 companies were, unsurprisingly, on a par with FTSE 100 firms, with a 1% increase for CEOs (to 7%) and finance directors (to 8%), and level pegging for other executive directors (both 7%).
The maximum bonus for CEOs, finance directors and other executive directors in FTSE 250 companies was 100%. CEOs in FTSE 250 companies received almost one-third less than their FTSE 100 counterparts, and finance directors received 11% less.
There was no change for other executive directors at 100%, regardless of whether they worked for a FTSE 100 or FTSE 250 company.
Target bonuses in FTSE 250 companies were significantly lower, at a set rate of 50% for all directors.
FTSE 250 CEOs received 50% less in maximum bonuses than their FTSE 100 colleagues. Other executive directors received 25% less. Finance directors in FTSE 250 companies did not fare so badly in comparison to their FTSE 100 peers’ maximum bonuses, receiving 14% less.
The most common performance measurement for FTSE 250 companies was profit.