Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • 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
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • 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
  • OHW+

Latest News

FTSE CEOs’ salaries top £2m

by Personnel Today 21 Aug 2003
by Personnel Today 21 Aug 2003

The
typical pay package for chief executives of the FTSE 100 topped £2m last year,
according to research by Mercer Human Resource Consulting.  

Of this, base
salaries were £600,000, while annual bonuses added another £400,000.

As well as the basic
cash elements, the typical CEO reward package included £550,000 in long-term
incentives through performance-based share awards and share options. Pensions
added a further £450,000.

The figures are
calculated based on a valuation method developed by Mercer in consultation with
members of the business community. Wider consultation is now being sought to
agree a methodology that would remove current inconsistencies in the disclosure
of executive pay.

"Pay packages
can be valued in different ways, and the figures that companies disclose are
open to wide interpretation," said Clare Turner, European principal at
Mercer Human Resource Consulting.  

Recent reports by
the Independent and Guardian newspapers, for example, have shown up to a
three-fold difference in total pay values for the same directors.

"What’s
needed is a uniform approach to valuations so we can compare apples with
apples," said Ms Turner.  

"Shareholders,
above all, need consistent and reliable information on which to base their
assessments of executive pay awards."

Mercer’s research
also highlighted variations in the value of different components of the CEO
package.

Long-term
incentives, which take account of performance conditions, varied from 45 per
cent of base salary for CEOs at lower quartile to 159 per cent for those at
upper quartile. Annual bonuses similarly ranged from 40 per cent to 101 per
cent of base salary.

The annual value
of pension was £800,000 at upper quartile, while the lower quartile value was
£180,000. The difference is generally accounted for by length of service and
type of scheme, with money purchase plans producing a lower value compared with
the gearing effect of final salary schemes.

Mercer also
researched the differences in pay levels by sector. Chief executives in the
media and consumer goods sectors reported the highest median total pay
(including pensions) of nearly £2,700,000.  

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.

Retail and
utilities (excluding telecommunications) reported the lowest median at
£1,700,000 and £1,250,000 respectively.  

By Ben Willmott

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
Administrators reported to be called into Powerhouse
next post
Employers unhappy with students’ literacy skills

You may also like

Performance management is broken: how can we rebuild?

11 Jul 2025

Gregg Wallace case: don’t be too hasty to...

11 Jul 2025

‘Replace sick notes with gym’, Streeting tells GPs

11 Jul 2025

Workers with second jobs at an all-time high

11 Jul 2025

How using data can transform return-to-office mandates

11 Jul 2025

Ministers loosen fire and rehire proposals in Employment...

10 Jul 2025

£188k tribunal award for director sacked after cardiac...

10 Jul 2025

It’s no secret – parity in the workplace...

10 Jul 2025

Firms’ salary secrecy means ‘they lose out on...

10 Jul 2025

Court of Appeal rules that Ryanair agency pilot...

9 Jul 2025

  • Empower and engage for the future: A revolution in talent development (webinar) WEBINAR | As organisations strive...Read more
  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...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
Forum for Expatriate Management
OHW+
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
    • Wellbeing
    • Recruitment & retention
    • 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
  • OHW+