Monday, November 06, 2006
Bosses get richer
Top executives were paid almost 100 times more than the country's average worker last year, a study from the research firm Incomes Data Services reveals today. In 2000, a typical FTSE 100 chief executive was paid 39 times the national average salary but today the figure is 98 times the average salary.
The average package of a FTSE 100 chief executive has soared to £2.9million, a 43 per cent jump on the previous year.
This is mainly their annual salary and bonus, but includes perks such as share options and long-term incentive payments.
Their average salary is £731,000, which is 9.1 per cent higher than the previous year, and their average bonus was £627,000.
In comparison, a full-time worker gets an average of £29,331, which means each executive earns the equivalent of 98 workers' annual salaries.
Total earnings for the UK's top bosses have increased by 102.2% since 2000, while other employees have seen their earnings increase by a comparatively low 28.6%, IDS said
Sir Martin Sorrell, chief executive of WPP, the marketing group, heads the list of most highly paid FTSE 100 heads, with £17.1 million of compensation.
Mick Davis, chief executive of Xstrata, the mining group received £15.3
Bart Becht, head of Reckitt Benckiser , the household products group, got £13.6
Alasdair Locke, head of Abbot Group, the Aberdeen oil drilling company, was the lowest-paid chief executive in the FTSE 350, pulling in a total of £222,000.
Official figures show City workers also received record pay rises of up to 21 per cent.
The typical annual salary for a man with a full-time job in London's financial centre is now more than £100,000.
Other research has revealed the scale of pensions available to senior bosses.
A typical director of a FTSE 100 firm can look forward to a payout of £168,000 a year, more than £3,200 a week, according to the study by the Trades Union Congress. The outlook is very different for their staff who will receive an average of £7,124 a year.