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01 August 2002

Another year of executive excess
Embargo: Not for use before Friday 2 August 2002
For the eighth successive year top executives' pay has rocketed, according to the latest Labour Research survey of boardroom pay. Directors of stock exchange companies earning over ?500,000 a year have seen average pay rises of 16.1% - more than three times that of private sector workers generally.

In all eight Labour Research surveys the average rises have been in double percentage figures terms. The rise in the 2001 survey was 18.8%, and this was preceded (going backwards) by annual rises of 21.2%, 10.7%, 15.7%, 16%, 16% and 10%.

In total 198 directors got a pay hike above the average rise of 16.1%. And 19 got a pay rise of 100% or more. The list of executives with the highest pay increases is headed by Richard Ireland, chair of builders merchants Wolseley, who in his last year as a full-time executive got a 192.5% rise to ?544,000.

But in cash terms he was nowhere compared to Luc Vandevelde, the Belgian brought in by Marks & Spencer to revive its fortunes. In the previous year he had waived his contractual entitlement to a bonus, but for this year the group's remuneration committee decided this year that he would not only get a bonus of 100% of salary but also half of the bonus he had foregone. This meant his salary leapt by 167.9% - the sixth ranked percentage rise - from ?834,000 to ?2.2 million.

He still didn't make it to the top of the salary league, however. This spot was taken by Martin Bandier, a main board director at EMI and chief executive of its music publishing arm, who hit the number one spot with ?3.7 million.
Bandier was not alone in the ?1 million plus bracket. There were a record 123 top executives who were on ?1 million or more ? 20 in number more than last year's survey.

A further 364 directors received between ?500,000 and ?1 million ? another record number.


Notes to editors

1 The pay figures listed include basic pay, annual and long-term bonuses and benefits. They exclude golden handshakes, profits made on share options and pensions. A list of all directors receiving ?1,000,000 or more and further details are published in the August 2002 issue of Labour Research.

2 Labour Research is published by the Labour Research Department, an independent trade union and labour movement organisation founded 90 years ago. More than 1,800 trade union organisations, including 55 national unions representing 99% of total TUC membership, are affiliated.

3 For further information contact Neal Moister on 0207 902 9818.

Download: Eight years of fat cat fun (pdf file, 67k)

 

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