FTSE 100 bosses see fall in bonuses

FTSE 100 bosses see fall in bonuses

FTSE 100 chief executives have still received sharp increases in their salaries despite the recession, according to pay analysts, Incomes Data Services (IDS).

Over the last 12 months, the top bosses at the top 100 companies saw average salary rises of 7.4% - many times the rate of inflation.

However, IDS said bonuses have fallen among the chief executives with average bonus payments falling to £502,000 in 2008/09, compared with £707,000 in 2007/08.

But the bosses at the top firms are still earning as much this year as they were when the economy was thriving in 2006.

According to IDS, payouts have fallen by 29% in the past year and the net effect of this was a 1.5% fall in directors’ overall remuneration.

Commenting on the figures, Steve Tatton of IDS said: “In previous downturns growth in bonuses slowed, but for bonuses to shrink, and almost by a third, is highly unusual.

“It seems extraordinary in the current climate that salaries have gone up by 7.5%, but looked at historically this is not out of line - this is actually the latest level of high increases in terms of salary going back 10 years,” added Mr Tatton.

The IDS concludes: “Salaries for FTSE 100 chief executives are rising twice as fast as salaries for shop floor workers.”

Last week, the Centre for Economics and Business Research (CEBR) revealed that City bankers will receive an estimated £6 billion in bonuses for this year, compared with £4 billion for 2008.

The CEBR did point out that this year’s payout is far below the £10.2 billion paid out in 2007 and future bonuses are unlikely to reach the levels of 2007 for several years.

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