Top bosses see pay and bonuses rise in 2008

Directors and managers have both enjoyed increases in pay and bonuses in 2008, according to research by salary survey specialist Celre, part of the XpertHR Group, in association with the Chartered Management Institute.


The National Management Salary Survey of 418 directors, 2,1409 managers and 18,200 professional staff from 241 companies, showed that the rate of increases in basic salary plus bonus for directors was 6.5%, compared with 2007’s rate of 5.7%.


The rate of increase in managers’ basic salary plus bonus increased from 5.2% in 2007 to 6.9% this year. The rate of increase for professional staff was 6.2% this year, compared with 5.6% in 2007.


The average director’s bonus rose from £61,511 in 2007 to £78,223 this year. The findings also showed that 85.1% of directors received a bonus this year.


The findings also revealed that the value and incidence of bonus payments had also increased for managers in the past 12 months.


The average bonus for managers in last year’s survey was £5,543. This had increased to £7,280 in the 2008 survey, with 65.2% of managers being awarded a bonus this year, compared to 61.3% the year before.


The survey also found that the resignation rate for directors had fallen from 3.5% in the 2007 survey, to 1.4% in this year’s survey. The redundancy rate for directors increased from 0.7% in 2007 to 1.8% in 2008.


The redundancy rate for managers increased from 1.3% last year to 2.4% in 2008, while their resignation rate remained the same at 4.6%.


The overall key indicators from this year’s survey for directors, managers and professional staff combined, are:


Movement in basic salaries plus bonus:


6.7% in 2008, compared to 5.3% in 2007, 5.7% in 2006, 5.3% in 2005 and 4.8% in 2004.


Movement in basic salaries:


5.0% in 2008, compared to 4.6% in 2007, 4.7% in 2006, 4.3% in 2005 and 4.4% in 2004.


Resignations:


6.5% in 2008, compared to 7.0% in 2007, 4.6% in 2006, 3.0% in 2005 and 4.6% in 2004.


Redundancies:


3.0% in 2008, compared to 1.4% in 2007 and 2006, 2.5% in 2005, and 2.9% in 2004.


Celre has been a leading publisher of salary survey and pay benchmarking data since 1968. It reports on pay for computer, sales and marketing, finance and HR and personnel staff, and in key industries.







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