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FTSE 100 executive earnings rise by a fifth

Oct 13 2014 09:44

London - Directors at London-listed blue-chip companies earned 21% more in the 2013/14 financial year thanks to a steep rise in long-term incentives, a report showed on Monday.

The median annual earnings for directors at FTSE 100 companies was £2.43m, with chief executives at £3.34m, employment research firm Incomes Data Services (IDS), part of Thomson Reuters, said.

Earnings pegged to long-term incentive plans rose by 44% and bonus payments were 14% higher, while basic salaries gained only 2.5% over the period.

"Salary rises may be modest but this can be more than made up for by the receipt of incentive payments. When such incentives pay out, they can pay out substantial sums, giving a significant boost to directors' earnings," said Steve Tatton, editor of the IDS report.

Britain's latest labour market statistics showed a 0.6% year-on-year rise in pay including employee bonuses from May to July.

Chief executives at media, marketing and telecoms companies earned most, with a median of £6.98m a year, while CEOs at retail and distribution companies were the lowest in the rankings with a median of £1.31m.

The report also showed the gap between chief executive pay and the rest of the workforce had widened

Heads of FTSE 100 companies earned 120 times more than full-time employees on average, against a 47% difference in 2000.

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executive pay  |  international markets


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