British CEO pay rising at twice rate of average earnings

Aug 04 2006 by Nic Paton Print This Article

The chief executives of Britain's top 100 companies received average pay rises of 10.8 per cent last year, twice the rate of increase in average earnings for the whole economy.

A survey by the magazine Labour Research looked at the pay and benefits of chief executives from the FTSE-100.

It argued top executive pay had continued to soar out of all proportion to the rest of the UK workforce, whose earnings rose by 5 per cent in 2005.

Labour Research found Stanley Fink of hedge fund manager Man Group to be the highest overall earner on £9.77m.

In addition to a basic salary of £426,000 in the year ending March 2006, Fink received an annual bonus of £5.5m and £71,000 in benefits along with shares under the group's performance plans worth £3.77m.

The average combined pay and benefits of the FTSE 100 chief executives was recorded at £1.62m in 2005, compared with £1.51 million the year before.

Performance-related pay made up a large part of the chief executives' remuneration, but even their average basic pay rise of 6.9 per cent (up from £627,000 a year earlier to £633,000) outstripped the rest of the UK workforce, said Labour Research.

Soon to retire BP boss Lord Browne had the highest basic pay of £1.45m.

Neal Moister, researcher for the Labour Research Department, who carried out the survey, said: "The pay of some of these chief executives seems to be spiralling out of control. There seems to be no limit on how much these executives can earn."