On October 26, 2009
Boardroom Pay: Heads You Win, Tails You Win
New statistics on boardroom rewards shows the only concession to recession is to turn bonuses into basic pay. When business is good, company directors increase their pay to share in the returns. When business is tough they think they deserve a rise in remuneration to compensate for the extra work involved. Now that performance targets are being missed because of poor trading, remuneration committees are rewriting the rules to ensure directors do not lose. Bonus payments are down by 29 per cent, according the Incomes Data Services (IDS), but directors’ salaries have risen by an almost matching amount. The average bonus for FTSE 100 directors is still just over £500,000, despite the widespread fall in profits and slashed dividends, yet…
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