Long-term incentive payments saw FTSE 100 company directors enjoy huge earnings rises over the last year, according to new figures published this morning.
Salaries rose by a relatively modest 2.5 per cent, data released by employment researchers Incomes Data Services showed, while bonuses rose 12 per cent.
However, overall earnings rose 21 per cent in the year to June owing to a 44 per cent increase in the value of long term incentive share awards.
Directors will not be able to cash in on those shares for an extended period of time which gives them a stake in the long term performance of the company, even if they leave.
The median total earnings for FTSE 100 chief executive is £3,344,000. The highest paying chief executives worked in media, marketing and telecommunications, transport and leisure, and financial services.
“Salary rises may be modest but this can be more than made up for by the receipt of incentive payments,” said Steve Tatton, editor of the report.
“When such incentives pay out, they can pay out substantial sums, giving a significant boost to directors’ earnings.”