Link: Fat cat executives get fatter
The majority of FTSE 100 companies have executive reward schemes that far exceed leading investor recommendations and cause concern with shareholders, a survey by consultants Hewitt Bacon & Woodrow revealed.
Four in five companies allow share option grants worth up to 700% of basic director’s pay, compared to a recommended maximum of 200%. In addition, three in four companies have long-term incentive schemes worth up to 300% of basic pay, three times the recommended level.
Hewitt Bacon & Woodrow said transparency would improve in the next year, when new regulations will bring remuneration under shareholder scrutiny.
From 31 December companies must disclose base pay, annual bonuses, share option grants and long-term incentive plans and submit them to voting at the annual general meeting.