Pay packages for top British executives to start growing
THE PAY packets of Britain’s top executives are set to start growing again after two years of stagnation, according to a survey released today, with almost 80 per cent of companies in the FTSE 350 saying they plan to increase payouts this year.
Main board directors at FTSE 100 firms can expect their salaries to rise between 2.5 per cent and 7.5 per cent this year, according to Deloitte’s executive directors’ remuneration report
Bonus awards are also set to rise, from an average of 71 per cent of maximum allowed last year to 87 per cent of maximum in 2011.
But with more focus on corporate governance and remuneration policies from City regulators in recent years, many firms are now defering parts of bonuses or introducing clawback provisions.
Two-thirds of FTSE 100 companies now postpone all or part of their bonus schemes, and around half also include a clawback designed to recover payments that are retrospectively deemed excessive.
The trend for companies to offer deferred bonus plans including shares that will vest in several years time has also continued, with the average chief executive of a top performing FTSE 100 company now sitting on shares worth 11 times their salary.