A question about executive pay

Something I don\’t know and wondering whether anyone does.

Executives at Britain\’s top companies saw their basic salaries leap 10% last year, despite the onset of the worst global recession in decades, in which their companies lost almost a third of their value amid a record decline in the FTSE.

This rise in pay: is it including or not including the pay rises which one assumes that people will get when they are promoted to a board/CEO position?

In other words, is it the pay rise that the CEO position gets, or is it the pay rise that someone becoming CEO gets (or even a combination of the two?).

At the other end of the spectrum, the worst-paid staff are those working in the retail and leisure sectors and for mining companies.

Including the miners there is a bit off: we\’ve virtually no mining in this country so almost all of those \”low paid\” miners are in lower wage countries.

4 comments on “A question about executive pay

  1. Thats the front page isn’t it , it could be that under commercial pressure a lot of people have been binned and the remainder promoted. We can sure at least that therte is not a conspiracy of “ Bosses” to defraud anyone .

    The Guardian offers no explanation except to imply there is a fraud being perpetrated . perhaps there is but not by everyone rich communicating via secret hand shake so what is going on ?

  2. What’s more, as the article admits:

    “Overall pay for directors of FTSE companies, including bonuses, fell by an average of 5%.”

    Sounds like the bonus culture is working – bonuses fell in a bad year.

  3. It’s executive pay as disclosed in the annual report, so the year-on-year comparison is based on positions not based on individuals.

    & Rio Tinto and BHP are the two biggest FTSE mining companies, so quite a lot of their diggers (quite) will be in Oz rather than in Ukraine or Zafrica…

  4. As this morning’s Alex cartoon suggested, perhaps one advantage of a pay rise over a bonus rise is that you end up with a larger final salary pension?

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