The 100 best-paid chief executives of British companies were paid £4.3 million each on average last year, an increase of 13 per cent on 2011, research has found.
The 100 best-paid chief executives of British companies were paid £4.3 million each on average last year, an increase of 13 per cent on 2011, new research has found.
The top 100 earned £50 million more than the year before and ‘pay for performance’ is still not working, according to the study by Manifest and MM&K.
The increase was largely the result of the FTSE 100 reaching a record high and increases in amounts of so-called ‘performance-related pay’, which is linked to share price movements.
Long Term Incentive Plan (LTIP) payouts REALISED were up 40 per cent from 2011; there was a general increase in all share prices; and LTIP awards that vested in 2012 were paid out 67 per cent of maximum vs 42 per cent for 2011.
Left Foot Forward recently reported that average weekly disposable income had fallen to a 12-month low, the second consecutive year-on-year decline in two months.
Average pay rose to just 0.8 per cent over the year to April, the lowest increase since the Office of National Statistics (ONS) began collecting comparable figures in 2001.
The graph below shows the long-term growth in bonus payments since 1998. (Deferred bonuses are not counted in the survey definition of total remuneration realised until it is paid.)
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