Bonuses push exec earnings up 55 per cent

 
Steve Dinneen
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FTSE 100 directors saw their total earnings rise 55 per cent year-on-year, fuelled by a massive increase in bonuses and performance related pay.

Across the FTSE 350 total board pay rose an average of 45 per cent in the year to June 2010, according to the latest Directors Pay Report by Incomes Data Services (IDS).

FTSE 100 chief executives took home an average of £4.9m in total earnings during the year, almost 200 times the average UK wage.

The report shows there has been a dramatic reversal in fortunes in the last 12 months. While basic salary increases across the board grew just 3.6 per cent for FTSE 100 chief executives, pay packages were boosted by a resurgence in bonus payments, the value of share option gains and separate long-term incentive plans (LTIPs).

While the FTSE 100 rose 14.5 per cent on the year, bonuses were up by over a third, share option gains by over 90 per cent and LTIPs by over 70 per cent.

FTSE 100 chief executives received bonus payments averaging £701,512, up 34 per cent from last year.

And most finance professionals expect the trend to continue next year, according to a separate survey by recruitment specialists Robert Walters.

Around 88 per cent of bankers expect a bonus this year, with more than half expecting roughly 20 per cent of their basic salary. However, a third think their pay rise will be capped at the rate of inflation.

FAST FACTS | REMUNERATION

FTSE 100 directors saw their total earnings rise 55 per cent year-on-year.

FTSE 100 chief executives took home an average of £4.9m.

88 per cent of bankers expect a bonus this year.