Blue chip firms rein in bonus payments for top executives

 
Suzie Neuwirth
THE AVERAGE bonus for a FTSE 100 chief executive is seven per cent lower than it was a year ago, according to new data from PwC.

The research showed that FTSE 100 chief executives received a median bonus payout of £905,000 in 2013, a seven per cent fall from 2012. Bosses received around two thirds of the maximum payout they could earn, dropping from 2011 highs when bonus payouts were typically over three quarters of the maximum.

Despite the fall in bonuses, the average FTSE 100 chief executive’s salary rose slightly to £825,000 this year, from £820,000 last year. Average total pay in 2013 was just under £3m.

“It is unsurprising that following a bruising 2012, firms have been keen to avoid the spotlight by demonstrating a responsible approach to executive pay this year,” said Tom Gosling, head of PwC’s reward practice.

“Companies have heard loud and clear from shareholders that bonuses and pay rises that are not closely linked to performance are unacceptable,” he added.

Total pay, which includes long-term incentives and pensions, has been largely static for all management levels at the top 350 companies this year, PwC said.