FD's pay tops £1m.
Financial directors’ pay broke through the £1m barrier for the first time last year as AMVESCAP FD Robert McCullough took home £1,071,000 in salary, benefits and annual bonus. This is the third year in a row that McCullough, an American-qualified accountant, has been the best paid FTSE-100 FD.
The finding comes in today’s fourth annual reports and accounts survey by Financial Director, Accountancy Age’s sister title. McCullough’s package comprised a basic salary of £255,000, compared with a FTSE-100 average of £288,997.
But he received a £814,000 bonus which took his total pay above £1m. The average total package for top 100 company FDs was £459,902 – a 13% increase on last year.
Schroders FD Nicholas MacAndrew, Billiton’s Michael Davis and Marconi’s John Mayo were paid in excess of £900,000. The average age of FTSE-100 FDs was a year lower than previously, at 48. There were nine FDs in their 30s, compared with just five in the first survey, in 1997. Only one FD, Derek Stevens at British Airways, was in his 60s.
This was the first year in which Big Five firms had a total grip on FTSE-100 companies’ audits. Sign-off fees fell by 2% year-on-year, though total fees including consultancy services, rose almost 18%. Consultancy makes up almost three-quarters of fee income derived from FTSE-100 clients.
Full details, page 24
Leader, page 16
Stop staff walking, page 20
Dream jobs?, page 22
FD salary survey, page 24.