FTSE 100 directors’ pay rises 49 percent

29.10.2011
The earnings of FTSE 100 directors has increased by an average of 49 percent in the last financial year, according to a report from Income Data Services (IDS).

It comes as the Financial Times revealed that the UK government paid staff £141 million in bonuses in the year ended April 2011, up £5 million from £136 million in 2010. Prime Minister David Cameron has previously pledged to crackdown on "crazy" civil service bonus payments.

The IDS report showed that the average total earnings of a FTSE 100 director is now around £2.7 million a year. Total earnings include fixed pay, salary and benefits, bonuses, cashed-in shares and the value of long-term incentive plans.

Although base salaries grew only 3.2 percent on average, the significant rise in earnings can be attributed to a rise in average bonus payments - up 23 percent from £737,624 in 2010 to £906,044 this year.

ICT companies that feature in the FTSE 100 include ARM, Sage, Vodafone and BT. IDS declined to disclose the pay details relating to these organisations.

"Britain's economy may be struggling to return to pre-recession levels of output, but the same cannot be said of FTSE 100 directors' remuneration," said Steve Tatton, editor of the IDS report.