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Fat cat bonuses fall - but they still average £905,000
EXECUTIVE bonuses have fallen for the second year in a row and one in ten received no bonus at all in 2013, according to PwC’s annual survey.
Total pay, made up of salary, bonus, long-term incentives and pension, has been largely static across FTSE350 senior management positions.
Where bonuses were awarded to FTSE100 chief executives, the average payout was £905,000 - a 7 per cent fall from 2012.
The analysis revealed that around one in five of FTSE100 and 15 per cent of FTSE250 chief executives have seen pay freezes in 2013.
Where salary increases have been given, they have been roughly in line with inflation at an average of 3 per cent, which is consistent with 2012 levels.
Richard Podd, tax director, PwC Newcastle, said: “It is unsurprising that following a bruising 2012, companies have been keen to avoid the spotlight by demonstrating a responsible approach to executive pay this year. Restraint is the name of the game, with relatively few changes to pay plans this year.
“Companies have heard loud and clear from shareholders that bonuses and pay rises that are not closely linked to performance are unacceptable. The fact executives are receiving a lower proportion of their maximum bonus entitlement confirms remuneration committees are getting tougher in setting and measuring bonus targets."
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