Bosses in the UK’s largest firms are continuing to enjoy inflation-busting
pay rises, according to research.
A study of 70 major companies by Watson Wyatt, shows that basic salaries of
directors are rising at four times the rate of inflation.
The median salary for chief executives in FTSE 100 firms is now £630,000 a
year. When bonus payments are taken into account, this package grows to
£984,000. Once long-term incentives such as share schemes are factored into the
equation, the figure increases to £1.5m.
The consultancy says that performance-related pay is becoming an increasingly
important part of board directors’ remuneration. The higher up the organisation
you go, the more important it is.
According to the survey, 79 per cent of companies operate share option
plans, and 50 per cent use performance-related or discretionary equity