PracticePeople In PracticeExecutive pay jumps 6.5%

Executive pay jumps 6.5%

Deloitte report into executive pay reveals slower rate of increase, but more performance-related income

FTSE350 executives saw their basic pay rise by 6.5% in 2005, a drop from a
7.1% increase in 2004, according to a new report from Deloitte.

The drop in the rate of increase was accompanied by an increase in the
amounts available in performance-related pay. The maximum bonus available to
executives from the Top 30 companies has increased from 125% to 150% of salary.

‘The rise in bonus levels has been accompanied by an increase in the
introduction of a deferred element in these plans. Deferred annual incentive
plans are now in place in 61% of FTSE100 companies and 44% of FTSE250 companies,
compared to 56% and 34% two years ago,’ said Carol Arrowsmith, partner and
remuneration specialist at Deloitte.

Share options, which have to be accounted for under IFRS in the profit and
loss account, are out of fashion, with performance share plans taking their
place, said Deloitte.

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