Monday, 1 November 2010

UK: directors' pay - IoD survey results

Following on from last week's report on FTSE100 directors' pay by IDS, the Guardian newspaper is reporting the findings of the Institute of Directors' latest survey of directors' rewards in small and medium sized enterprises: see here. According to the Guardian report, published yesterday evening on the newspaper's website:

The Institute of Directors tonight defended executive pay, saying that the average pay rise for the 54% of UK company directors who received one this year was just 2.5%. The IoD said that 46% of directors either had their pay frozen or cut, when adjusted for inflation ... The IoD said average basic pay of a managing director in a small company, with turnover of up to £5m a year, was £70,000; in a medium sized company, with annual turnover of up to £50m, it was £100,000; and in a large company with a turnover up to £500m a year it was £128,000. The directors' organisation insisted that pay cuts for directors were not being offset by better bonuses, which it said remain modest relative to big private sector bonuses. According to its survey, 23% of directors said their bonus had been cancelled or postponed this year. Where bonuses were awarded, the average amount was down nearly 20% on last year. The average bonus for a director in a small company was £10,000; £12,600 in a medium company; and £17,200 in a large company".

No comments: