Top FDs reap rewards with huge bonuses

Finance directors of the UK’s largest companies have received massive payouts
in the last 12 months, with bonus schemes pushing pay rises into double figures.

FTSE100 FDs received an 11.3% increase in average total pay during the last
12 months, to £769,000.

Research by our sister publication Financial Director and data analysts
BoardEx found there were 16 £1m plus payouts to FTSE100 FDs. The salaries of
FTSE250 FDs also soared. Average total pay rose by 14.9% to £430,000, from
£374,000 in 2004.

Reckitt Benckiser FD Colin Day moved to third in the pay table, with his
total package rising by 20% to £1.6m, due to a £1.1m bonus that attracted
criticism from shareholders earlier in the year.

Man Group FD Peter Clarke remained the highest paid FD despite a decrease in
remuneration. He received £2.4m, compared to £2.5m in 2004.

Shareholder lobby groups treated the findings with caution. A National
Association of Pension Funds spokesman said pay should be transparently tied to
performance, with bonuses not handed out ‘willy-nilly’.

The Association of British Insurers agreed that a link should be established
between performance and the creation of shareholder value.

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for the full tables

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