Directors of the top listed UK firms saw their paypackets increase by 14% in the past year, driven by share-based long-term incentives, according to a new report by the Incomes Data Services (IDS).
The annual IDS Directors’ Pay Report says that while basic salaries only grew by 4% and annual bonuses fell by 8.8%, the share-based long-term incentive plans went up 58%. This contributed to the 14% overall paypacket growth in the last year.
In 2011, the same report revealed that directors’ pay had grown by 49%. According to the 2013 report, the average pay for a FTSE 100 company’s chief executive had risen to £3.3m.
Steve Tatton, editor of the study, said, “The higher share-based payouts clearly made up for any ground lost in lower annual bonuses. But this boost to overall earnings took place without any of last year’s talk of a shareholders’ spring, with fewer institutional investors voting down remuneration reports.
“This was perhaps because the vesting of large share awards is currently less visible to investors than salary increases and bonus payouts.”
Frances O’Grady, general secretary of the trade union TUC, said that pay is increasing 20 times faster for directors than average workers.
“It’s one thing replacing bonuses with long-term incentive plans, but FTSE 100 companies are simply exploiting this change to make their fat cats even fatter”, she said.
“The time has come for legislation to put ordinary workers on the pay committees of companies. This is the only way to bring some sanity to the way in which directors are paid.”
Like our Facebook Page
Strange Ways the Sporting World Impacts the Environment
The Future of Cryptocurrency is Eco-Friendlier than the Present
Why Bill Gates Is Wrong on the Climate Impact of Bitcoin
Everything You Need to Know to Create an Eco-Friendly Nursery
4 Environmental Benefits of Using A Buckwheat Pillow
Eco-Friendly Ways to Dispose of The Office Furniture!
7 Huge Advantages of Using Solar Power at Home
5 Important Changes to Become An Eco-Friendly Nicotine User
4 Great Ways to be a Committed Eco-Tourist While Flying
7 Basic Types of Forex Charts Ethical Investors Must Understand
How to Make Your Ecommerce Business More Eco-Friendly?
How Can Social Media Help In Promoting Sustainable Lifestyle?
Luxury Development for The Ultra-Rich Causing Climate Change Conundrum in Barbuda
How Does Bitcoin Mining Work and is it Eco-Friendly?
Is Gen Z Ahead of Millennials in Terms of Eco-Investing?
Four Reasons Why Buying Used Cars Is the Way to Go Green
There is no Planet B: The Growing Importance of ESG
Wonderful Environmental Monitoring Tips to Keep Indoor Air Clean
The Tremendous Benefits of Investing in Energy-Efficient Windows
4 Morning Productivity Tips for Green Entrepreneurs that Are Night Owls
- Features10 months ago
Eco-Friendly Interior Design Is Easier Than You Might Think
- Features7 months ago
Eco-Friendly Hacks To Create A Durable Shop For Your Home
- Features8 months ago
5 Simple Ways To Create A Greener And Healthier Home
- Environment11 months ago
The Benefits Of Sustainable Agriculture For Farmers