Earnings of finance directors in the U.K.’s FTSE 100 Index companies rose 9.5 percent to an average of 1.07 million pounds ($1.6 million) in the past financial year, according to a report published today.
The increase was driven by “large bonus payments” of an average 588,500 pounds, equivalent to 127 percent of salary, while salaries rose by a “subdued” 2.4 percent, London-based Incomes Data Services said.
Companies felt under pressure to offer more attractive bonuses to finance directors in order to retain their services or entice highly skilled executives away from existing positions, according to the report.
“The so called ’shareholder spring’ has seen executive remuneration in the spotlight once again,” said Adam Cohen, author of the report. “While salary rises in the FTSE 100 have been modest, bonuses, which account for a greater proportion of pay, have increased much more strongly.”
The average salary for finance directors in FTSE 100 firms was 499,330 pounds and in AIM-listed companies was 130,000 pounds, according to the report.