Median salary increase for company directors is 2.5%.
Salary increases and bonus payouts for executive directors in 2012 are lower than the previous period, according to research by Deloitte.
The 2012 FTSE 100 Executive directors’ remuneration report found that the median salary increase for company directors is around 2.5%. It also found that one-third will not receive any increase this year compared with 20% last year.
The research also found:
- There has been no increase in the median potential bonus that may be earned, remaining at 150%.
- Bonus payouts for the period ending in 2011/12 were lower than those in the previous period.
- 58% of FTSE 100 directors now hold company shares with a value of at least 200% of salary.
- 23% of directors and 43% of chief executives hold shares with a value in excess of 500% of salary.
Stephen Cahill, partner in the remuneration team at Deloitte, said: “Remuneration committees have continued to take a cautious approach to executive pay with overall packages remaining broadly flat compared to the previous year.
“We are encouraged by lower salary increases and bonus payouts. This suggests that remuneration committees are taking steps to ensure that the compensation paid to executives is fair and reasonable, and linked to the long-term strategy and success of the business.”