Finance directors grow fat, but they're skating on thin ice

Oct 04 2005 by Brian Amble Print This Article

The average annual remuneration of FTSE 100 finance directors has risen 12 per cent to £799,000, with big bonus payments pushing 21 beyond the million pound barrier.

According to Accountancy magazine's latest annual survey, the average salary of a FTSE 100 finance director is now £387,000, five per cent more than last year.

But average bonuses have soared by 16 per cent to £335,000. Together with other smaller payments such as pension contributions, this adds up to a total average remuneration package of £799,000, compared with £716,000 last year.

These double-digit rises have also pushed more FDs above the million pound barrier. In last year's survey, 15 finance directors were paid more than a million a year. This year the figure is 21.

"Being a finance director has become even more lucrative than it already was, but the role is getting more precarious," said Chris Quick, editor of Accountancy.

"Eighteen FDs – almost one in five – have left their jobs since the survey was carried out last year. This compares with ten changes in last year's survey.

"Some have been promoted or got better jobs, but others have found themselves in the firing line when their company has hit problems, particularly in the retail sector.

"FTSE 100 finance directors might be perceived as fat cats, but they are skating on thin ice."

The most highly paid FTSE 100 finance director is Peter Clark of the Man Group, on a package of £2.359m.

The survey also found that 19 FTSE 100 finance directors have no accountancy qualification.