Total pay for the directors of the UK’s top businesses rose 14% over the past year driven by a huge jump in share-based long term incentive payments, a pay research company has found.
Incomes Data Services ((IDS) said this took the average pay for a director of a FTSE 100 firm to £3.3m.
IDS said basic pay rises were “relatively restrained” at 4% higher, while annual bonuses fell 8.8%.
But total pay rose thanks to a 58% rise in share-based long-term incentives.
And over the past ten years, the median total earnings of a FTSE 100 chief executive has gone up by 243%, Steve Tatton, editor of IDS’s directors’ pay report, told the BBC.
Mr Tatton said the survey illustrated the “complex make-up of boardroom remuneration”.
“With nearly two-thirds of FTSE directors benefiting from an LTIP [long-term incentive plan] award in the latest year, the higher share-based payouts clearly made up for any ground lost in lower annual bonuses,” he added.