BONUSES are back for Britain’s top executives as a skills shortage combined with renewed economic optimism pushes up rewards, a study reveals today.
After two years of falling pay, chief executives’ total compensation jumped 15.8 per cent over the last 12 months, according to a survey carried out by the Chartered Management Institute (CMI).
And overall, directors saw bonuses and salaries rise by an average of 5.3 per cent, well up on the 2.3 per cent rise in the previous year and returning to above-inflation growth.
The improvement takes the average director’s bonus to £64,594, 14-times the £4,665 bonus given to the average junior manager.
Part of the reason is a shortage of skilled managers, driving up pay, the CMI said.
Two-thirds of firms reported problems finding suitable staff, with 74 per cent reporting a skills shortage at management level, one factor driving up pay.
The surge in stock prices is also likely to have driven the improvement, as directors’ bonuses are in part linked to share prices. The FTSE 100 increased by almost 10 per cent over the last year to hit post-crisis highs.