Executive salaries set for modest rise

EXECUTIVE SALARIES are expected to increase by between 2% to 4% in 2012, according to a PwC survey of FTSE-350 recruiters.

Around two-thirds (65%) believe base salaries will rise, while 30% say they will lift salaries alongside other components, such as long-term incentives.

Not all expect remuneration growth, though. Around 13% expect pay freezes, while 85% expect no increase in bonuses.

“Even moderate pay increases in line with inflation are likely to prove controversial given the growing public and political pressure to address the widening gulf between the highest and lowest earners, compounded by tough economic conditions,” said Sean O’Hare, reward partner at PwC.

“But whether anticipated salary rises play out next year will depend on whether markets improve. Increases that are not aligned to company and share price performance are likely to meet strong resistance from shareholders.”

Related reading