Generous pay packets in the boardroom could be set to become a thing of the past, as a new report has found that fees for non-executive directors have grown at their slowest rate for more than 15 years.
According to research out today from PwC, the median non-executive director base fee increased by three per cent to £65,000 in 2015, which is the smallest proportion of growth since the professional services firm started the survey in 1999.
By contrast, fees for non-executives grew by seven per cent in 2014.
"The 2015 data suggests that there has been a conscious decision to align practice for non-executive director fee increases with that of the executive team and the rest of the workforce, through more gradual fee increases," said Fiona Camenzuli, partner in the reward and employment team at PwC. "The environment has changed and boards are mindful of the broader debate on fair pay and the likely impact on their reputation and brand, although it remains to be seen if this trend continues when companies review fees in 2016."
Research released last November by PwC discovered that bosses' bonus payouts had become closer aligned to the performance of their companies since 2012, when proposals to make disclosures of directors' pay more transparent were revealed by government.