Exec pay 'rising 7 times faster'

Executive pay is rising seven times faster than average wages, according to figures released by the Office for National Statistics.

Senior exec pay 'up by up 14%'

Company chairmen in the FTSE 100 have seen their fees rise by 14 per cent from last year, compared with average workers who have enjoyed a modest 1.9% rise, lower than the rate of inflation.

Average percentage rise in pay, 2012:

  • Average worker: 1.9%
  • FTSE 100 chairman: 6.0%
  • FTSE 100 senior independent director: 10.0%
  • FTSE 100 remuneration chairman: 14.0%
  • Inflation (RPI): 2.6%

Source: IDS, Office for National Statistics

TUC calls for 'urgent reform of boardroom pay'

Company chairmen in the FTSE 100 have seen their fees rise by 14 per cent from last year.

TUC general secretary, Frances O'Grady has called for an "urgent reform of boardroom pay." She said:

Top directors are showing little restraint while millions of workers are suffering real-term losses to their incomes and are really feeling the squeeze on their living standards.

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Boardroom pay scrutiny is a 'contentious issue'

Nasreen Rahman, assistant editor at IDS, has called the scrutiny over boardroom pay and the link to shareholder returns a "contentious issue".

New figures revealed that FTSE 100 directors' pay has risen over seven times faster than average wages.

Executive pay at FTSE100 businesses is coming under increased scrutiny. That is especially the case in financial services, where the connection between risk and reward is attracting attention not only from shareholders but also from regulators.

Remuneration committee chairmen have a crucial role to play in improving corporate governance in the wake of the credit crunch. Aligning the interests of the chief executive and shareholders is a particular challenge.

– Nasreen Rahman, assistant editor at IDS

Directors' pay rises seven times faster than average

FTSE 100 directors' pay has risen over seven times faster than average wages, pay analysts have said.

According to Incomes Data Services (IDS), non-executive chairmen of top companies received average pay rises of six per cent last year, giving them earnings of nearly £400,000.

FTSE 100 directors' pay has risen over seven times faster than average wages Credit: Dave Thompson/PA Wire

The research has revealed that among FTSE firms, average fees ranged from £270,000 in technology businesses to over half a million pounds in oil and gas companies.

Average fees for non-executive directors increased by four per cent last year, to £64,000.