Belfast Telegraph

Director pay leaps 49% in a year

By Alan Jones

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 £2.7m, a 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 can't be said of FTSE 100 directors' remuneration.

"The generous packages that FTSE 100 directors 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 can provide justifications for the bonuses awarded.

"This means that they will have to be much more transparent about how total benefits packages are structured."