UK bosses continue to reap rewards

According to the Boardroom Remuneration Guide, published today by Hay Management Consultants, the total cash earnings of CEOs in the UK went up by 18.6% during the 12 months to May this year.

FTSE-100 CEOs are now paid an average £752,000 a year, including a base salary of £550,000. Main board directors in the FTSE-100 are paid an average £418,000 with a base salary of £345,000.

CEOs in large companies are also seeing massive increases in the value of their share option grants. The number of CEOs being granted share options worth more than £500,000 increased from 50% in 1999 to 59% this year.

Damien Knight, director of Executive Remuneration explained the huge pay increases for the top CEOs. He said: ‘Remuneration of the top UK CEOs is moving towards US levels. Global companies such as BP and Vodafone have found they need to pay their top executives in line with the US in order to recruit and retain the best executives’.


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