Recession Hits Bumper Pay Rises for Top Bosses

Research revealed that the bosses at UK’s biggest listed companies saw growth in basic pay fall behind the national average for the first time in a decade last year.

Average executive director pay within FTSE 100 companies rose by 1% in 2009, falling short of the 2.5% national average. According to PwC’s annual report on executive compensation, one in six blue-chip company directors didn’t receive a bonus while dividends that were made were slashed by about 20%.

In 2008, the average FTSE 100 and FTSE 250 director saw a 6% rise in pay compared with a 3.7% rise in the national average. Companies reined in pay as trading slumped towards the end of 2008 and 2009 but they continued to face share-holder backlash over remuneration plans in the wake of the recession and global credit crunch.

Five listed firms had their pay proposals voted down by shareholders last year, including Royal Dutch Shell, Bellway and Punch Taverns. But in general, companies largely upheld long-term incentive grants, with the average for chief executives dipping from 150% of salary to 140%.