FD pay rises miss boardroom mark
Finance directors' pay increases, although generous, are lagging behind those of their boardroom colleagues, according to new figures.
A study by the Institute of Management and Remuneration Economics has revealed company directors’ earnings increased by 12.9% in the year to January 2001. But the research, based on 421 companies, showed FDs’ overall earnings, including bonuses, increased by just 11.7%.
Finance managers also enjoyed a hike, although by just 6.9%. The increase in directors’ earnings was mostly due to bonuses. Mary Chapman, director general of the institute, said: ‘This big rise in bonuses reveals the extent of economic buoyancy and business confidence in the UK during the period covered by the research.’
Tesco this month revealed three of its board members were paid more than Pounds 1m last year. A further three, including FD Andrew Higginson, made more than Pounds 1m if profit on share options is included.