Executive pay dips below average increase
FTSE executives enjoyed more modest pay increases than the general population last year, a surprising new report has found.
The PriceWaterhouseCoopers annual report on executive compensation shows the national average earnings increase of 2.5 per cent outstripped the FTSE 100 pay increase of one per cent for the first time in a decade.
The report contradicts generally held assumptions that large corporations had managed to evade the ravages of the recession while those on the lower end of the ladder suffered.
It comes a day after an Institute for Public Policy Research (IPPR) report showed nearly half of all young black people in the UK were unemployed, up from 35% before the recession began.
Today’s report indicates FTSE 100 companies have exercised some pay moderation in response to the recession. The median increase in the base salary of just one per cent indicates company bosses are aware of potentially explosive political circumstances surrounding the recession.
Bonus potential remained stable, however. The median maximum bonus potential for CEOs remained at 150% of salary in the FTSE 100, equivalent to around £1.2 million.
But actual bonus payments decreased by 20% in 2009, reflecting business performance and the economic climate.
Public animosity to the bonus culture remains substantial, however, regardless of whether the recipient is a banker.
