29/08/2001

UK’s top directors pay increase is five times the average rise

A survey for The Guardian newspaper by compensation consultants Inbucon has revealed that Britain's top directors received an average pay rise of 28 per cent last year, more than five times higher than the rise in the UK's average wage.

The figures were calculated from the annual reports of all the FTSE 100 companies, and include bonuses and share options as well as basic pay.

The survey found that more than 140 executives at FTSE 100 companies took home at least £1 million last year.

The newspaper revealed that many of the highest paid executives made most of their money through performance related schemes such as share options. This was despite a poor share performance by many companies in the period.

Removing the effect of bonus schemes, the survey found that base salaries rose by an average rise of 22 per cent.

Latest government figures showed average pay rises across the whole economy was 4.8 per cent in the period to June, while in the year to December 2000 the average rise was 5 per cent. (MB)

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