The salaries of finance directors in UK-listed organisations increased by an average 4.7% in the past year, according to research by Incomes Data Services (IDS).
The IDS Executive compensation review, which surveyed the earnings of finance directors at 369 UK-listed organisations in the year to 31 March 2013, also found that finance directors in FTSE 100 organisations now earn an average of £1.7 million per year, including salary, bonuses, share option profits and incentive payments.
The salary component of these earnings amounts to an average of £502,000 for FTSE 100 finance directors, a 3% increase from 2012.
AIM-listed businesses, meanwhile, saw the fastest growth in finance directors’ salaries, with an average increase of 5.9% in the last year. The average salary for a finance director in this type of organisation is now £143,000, rising to £174,000 when bonuses, share option profits and incentive payments are added.
Nasreen Rahman, author of the report and assistant editor at IDS, said: “Listed organisations are now finding that it can be difficult to find someone appropriate for their finance director positions, because there is a limited pool of candidates with the breadth of skills and experience now required for the role.”
“This is pushing up the value of those that do have the qualities that employers are looking for. This small, elite group can command very high salaries, which continue to grow.”