Incredible pay rises for some!

Directors in the country's top firms have seen their pay rise by almost 50% in the past year, taking their average earnings to just under £2.7 million, a new study has revealed.

Research by Incomes Data Services (IDS) among directors in FTSE 100 companies showed that their 49% increase - which covers salary, benefits and bonuses - was higher than the 43% jump in the pay of chief executives.

Average bonus payments for directors increased by 23% from £737,000 in 2010 to £906,000 this year, said the report.

Steve Tatton of IDS said: "Britain's economy may be struggling to return to pre-recession levels of output, but the same cannot be said of FTSE 100 directors' remuneration. The generous remuneration packages that FTSE 100 directors now receive indicates a marked improvement in boardroom fortunes.

"But with closer scrutiny of boardroom pay expected in the future, remuneration committees will have to make sure that they are able to provide full and thorough justifications for the bonuses awarded. This means that they will have to be much more transparent about how total benefits packages are structured and how performance is measured."

The pay of FTSE 100 chief executives rose by 43% in the last financial year to an average of £3.8 million, while finance directors enjoyed a 34% increase to take their average earnings over the £2 million mark, according to the report.

Mr Tatton said the figures showed the pay gap between the boardroom and the shop floor showed no sign of closing, adding: "At a time when employees are experiencing real wage cuts and risk losing their livelihoods, without further explanation it may be difficult for FTSE 100 companies to justify the significant increase in earnings awarded to their directors."

Sir Martin Sorrell, chief executive of marketing firm WPP, defended executives' remuneration after his pay increased by 17% last year. He told BBC Radio 4: "Look at what chief executives of media companies are paid in other parts of the world. We are a worldwide company, we are the leading company in our industry, the comparison, whether you like it or not, is with other companies in the world."

Bob Crow, leader of the Rail, Maritime and Transport union, said: "The same top bosses demanding wage restraint and attacks on workers' rights on the shop floor have been caught stuffing their own pockets in the boardroom. The idea that Vince Cable is going to get a grip on this scandal of bosses' greed has been exposed as a sick joke and we will factor this information into the pay round and we will hear no more of this 'we are all in this together' rubbish."

Re: Incredible pay rises for some!

I heard that on the news this morning. I wonder if those directors feel the slightest bit guilty receiving those 'disgusting' pay rises while the rest of the country have to tighten their belts?

Re: Incredible pay rises for some!

Its shocking news when others are having very little ..My husband is on a 2 year pay freeze as he works in the public sector and its very unfair..When everyone is trying to watch the money and some will be frightend to turn heating up in the winter you have to say its a very unfair world..That old saying "The rich get richer is very true "

Re: Incredible pay rises for some!

Rena darlin' - with news of this downright 'greed' of the 'movers and shakers' in the boardroom of many of our companies is it any wonder why I am a communist (and proud of it) and would love to see these major companies 'nationalised' without compensation!!! and then these so-called Directors can survive on 'average' earnings, like the rest of working class!!!

Re: Incredible pay rises for some!

The greed factor is not just the province of the directors and the fat cats, we are continually being shafted by the very people that are supposed to be in our corner.

We have our MP's who have proved beyond all doubt that they will lap at the trough for as long as they can get away with it.
The union leaders for certain have not exercised one iota of restaint or lead by example, they have done very well thank you, especially our Mr Crow.
Someone is taking the *i** and it aint us old uns thats for sure.

Re: Incredible pay rises for some!

Even as a confirmed capitalist I think this is pretty crass in these hard times, the people at the top should be leading by example, not screwing their staff and shareholders by their insatiable lust for cash. And as Hammer rightly says, the union leaders, Bob Crow et al, have nothing to be proud of either....their snouts are proving to be as long as any...