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Bosses’ pay soars as share values fall
Business Digest: Survey shows there is no link between the pay a CEO receives and shareholder value
Median pay and benefits for the bosses of FTSE-100 companies have increased by five per cent to £3.1m since 2008, despite average earnings per share falling by one per cent in the same period.
The findings, in a survey by MM&K and Manifest, suggest that there is little or no link between pay, performance and shareholder value.
The survey also found remuneration packages heading the same way as in the much-criticised banking sector with annual bonuses making up an increasingly important proportion. Up to 300 per cent of CEOs' salary is now paid as bonuses.
Non-executive directors are sharing in the bonanza, too. Their pay has increased by an average six per cent to £70,250, reflecting the fact that "being a non-executive director in a FTSE-100 business has become a demanding, professional role with increased day-to-day responsibilities".
Read a full report at the Financial Times (registration required). ·
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Given that I used to work for a FTSE-100 company and was made redundant, it's nice to see my pay going to a good cause.