Monday, 18 November 2013

Directors' Pay Jumps 14% in Year Thanks to Share Incentives


BBC: Total pay for the directors of the UK's top businesses rose 14% over the past year driven by a huge jump in share-based long term incentive payments, a pay research company has found.

Incomes Data Services ((IDS) said this took the average pay for a director of a FTSE 100 firm to £3.3m.

IDS said basic pay rises were "relatively restrained" at 4% higher, while annual bonuses fell 8.8%.

But total pay rose thanks to a 58% rise in share-based long-term incentives.

And over the past ten years, the median total earnings of a FTSE 100 chief executive has gone up by 243%, Steve Tatton, editor of IDS's directors' pay report, told the BBC.

Mr Tatton said the survey illustrated the "complex make-up of boardroom remuneration".

"With nearly two-thirds of FTSE directors benefiting from an LTIP [long-term incentive plan] award in the latest year, the higher share-based payouts clearly made up for any ground lost in lower annual bonuses," he added.

A director is typically awarded a proportion of their salary in shares, which pay out only if the director hits their performance targets. » | Monday, November 18, 2013

Get Adobe Flash player