Six FDs make it into £1m big league
Big bonuses have taken six FTSE-100 FDs into the million-pound-a-year bracket, according to the fifth annual pay survey by Financial Director magazine.
Amvescap’s Robert McCullough, the American accountant who has headed the league table for three years, has finally been toppled from the number one slot, despite a 53% increase in his salary, bonus and benefits package to Pounds 1,635,000.
The new top-ranking FD is Vodafone’s Ken Hydon, who earned a Pounds 2,426,000 bonus last year in the wake of the merger with Mannesmann, taking his total pay package to Pounds 3,036,000.
Nicholas MacAndrew, the soon-to-depart FD of Schroeders, earned a regular annual bonus of Pounds 428,000, plus an additional Pounds 750,000 because of the sale of the investment banking business, taking his total package to Pounds 1,371,000.
Overall, FDs of FTSE-100 companies earn Pounds 311,668 on average, 9% more basic salary than in last year’s survey, but bonuses are up by 55% to Pounds 198,665. With benefits packages worth some Pounds 21,000, total average pay for leading FDs is up 16% to Pounds 531,593.
Bonuses accounted for 40% of total pay packages, up from 28% in last year’s survey.
The survey also looked at the age of FDs and found they have managed to make time stand still: the average age of an FD was unchanged at 48, thanks to the departure or promotion of FDs such as David Allvey (54) at Barclays and Robert Colvill (59) at Marks & Spencer; they were both succeeded by FDs aged 44.
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