BusinessCompany NewsPay-rises of non-execs continue to slow

Pay-rises of non-execs continue to slow

Non-execs feel the pinch of the credit crunch

Salary levels for non-executives have slowed down for the second year in a
row.

A PwC study In the wake of the credit crunch shareholders are taking a
tougher stance on the role of directors’ and how they should be rewarded
according to a study published today.

In 2005-06 fees rose by 25% and slowed to 16.7% from 2006-2007. This year the
fees have risen by just 15.6% the
Financial
Times
reported.

Sean O’Hare, partner at PricewaterhouseCoopers which conducted the annual
review, said: ‘As fee increases become more moderate we can expect more focus by
shareholders on the disclosure of non-executive directors’ effectiveness rather
than just what they earn.’

The pay rises might be falling, but the work load is increasing. According to
the paper, Non-Executive director practice and fees, the average time
spent by a non-executive director on a company has risen from 15 days to 21
days.

‘The rate of fee increase is leveling off as non-executive directors and the
boards that employ them are working harder to balance fees with responsibilities
that come with the role, O’Hare added.

Further reading:

Groups
rein in non-execs’ pay rises

ICAEW
fellow appointed non-exec director of Cheapflights

Tenon
appoints new non-exec

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