04 August 2003
Another year of executive excess
For the ninth 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 12.4% - about three times that of private sector workers generally.
In all nine Labour Research surveys the average rises have been in double percentage figures terms. The rise in the 2002 survey was 16.1%, and this was preceded (going backwards) by annual rises of 18.1%, 21.2%, 10.7%, 15.7%, 16%, 16% and 10%.
The list of executives with the highest pay increases is headed by Stuart Wallis, the former chair of information management group Communisis, who got a staggering 1,818% rise last year before retiring in April. He and chief executive David Jones shared a ?3,635,000 bonus under an incentive plan which took his final year's earnings from ?100,000 to ?1.9 million. The bonus also catapulted Jones into second spot in the pay rise league. Taking the bonus into account on top of his ?316,000 in pay and benefits, his rise amounted to 757%.
In cash terms, City men dominated the top of the salary league. In first place was Christopher Mills, chief executive of the North Atlantic Smaller Companies investment trust, who leapt to the top of the table after receiving ?3.5 million for the cost of cancelled share options plus ?1.37 million in fees.
Stanley Fink, chief executive of financial services group Man, took second spot with ?3.81 million, followed closely by Michael Spencer, chief executive of broker ICAP, on ?3.68 million.
There were a record 152 top executives on ?1 million or more. And a further 416 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 ?1,500,000 or more and further details are published in the August 2003 issue of Labour Research.
2 For further information contact Neal Moister on 0207 902 9818.
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