17/12/2001

Executives prosper as pay rises decline

A new survey has suggested that pay rises are in decline as many companies feel the affects of the economic downturn.

Research from the Confederation of British Industry (CBI) has revealed that one in six service sector companies and one in ten manufacturing firms have frozen pay completely, with the situation expected to worsen, especially in the service sector which has so far not felt the full effect of the recession afflicting the manufacturing industry.

However, executive directors of FTSE 100 firms can expect to see their salaries rise year on year, according to a survey by financial watchdog Pension Investment Research Consultants (PIRC). The increase in directors’ basic pay has outstripped the UK average wage increase – 4.4 per cent – and when cash bonuses and share options are factored in, the figure can amount to twice their basic salary.

“This creates a major challenge for shareholders to act to curb excess,” commented Stuart Bell, Research Director of PIRC, who warned that the situation could create “a powerful multiplier effect which has the potential to create a boardroom pay explosion in coming years.” (CL)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

11 March 2002
Employers urged to address issue of equal pay
Employers have been urged to apply for a Castle Award, the new mark of excellence which will reward employers’ efforts in tackling equal pay issues.
04 March 2002
Top Consignia directors decline 10 per cent pay hike
Two senior directors of postal company Consignia have decided not to accept a 10 per cent pay rise following anger among postal unions.
15 December 2015
Energy And Manufacturing Advisory Group Established
An Energy and Manufacturing Advisory Group has been established to find a solution to combat energy costs within the manufacturing sector. Enterprise Minister Jonathon Bell said a strong, flourishing manufacturing sector was at the centre of the Executive's vision for the Northern Ireland economy.
11 February 2019
Robot Exchange Creates Seven Jobs At Lisburn Research Hub
A UK robotics firm is to create seven jobs in a new research and development hub in Lisburn. The Robot Exchange was established in Nottingham just over a year ago, and specialises in robotic process automation (RPA), essentially automating repetitive tasks such as back office administration.
06 August 2019
Small Business Research Initiative (SBRI) Competition Launched
A new Small Business Research Initiative (SBRI) competition, aimed at supporting businesses develop solutions to help provide careers advice for young people with Autism Spectrum Disorder (ASD), has been launched by the Department for the Economy's Careers Service.