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