The median pay increase for executive directors in SmallCap organisations has been broadly consistent with the rest of the workforce at 2%, according to research by Fit Remuneration Consultants.
Its annual FTSE SmallCap executive remuneration survey, which analyses the SmallCap, an index of small market capitalisation companies, found that the number of larger salary increases, at more than 4%, is lower for all directors compared to 2012.
The research also found:
- 31% of SmallCap chief executive officers (CEO) experienced pay freezes, down from 39% in 2011/12.
- Actual bonus levels as a percentage of the maximum bonus opportunity for CEOs remained broadly at levels equivalent to an on-target outcome, 57% of maximum bonus compared to 60% last year.
- Award levels under long-term incentives remain largely unchanged, with the face value of awards for the CEO continuing to be around 100% of base salary.
The report stated: “The continued intense scrutiny of pay has led to remuneration packages remaining broadly ﬂat compared with last year.
“There have also been very few changes to the basic structure of remuneration with many companies deciding that the current climate is not the ideal time to undertake a fundamental review. We expect that more will wish to review their current structures as the economic outlook improves.”