CFOs at AIM-listed UK technology companies are paid much less than their counterparts in other sectors, a review by Grant Thornton has found.
According to the review of senior executives’ remuneration packages, average publicly listed CEO and CFO pay was substantially lower than their counterparts in other sectors, despite average share prices in the sector outperforming the wider market.
Based on the 2011/12 accounts of technology companies on the London Stock Exchange’s Main and AIM markets, CFOs and finance directors of AIM technology firms received an average total package equating to £192,000 – substantially below the whole AIM market average of £469,000.
The lower average remuneration packages come despite the sector’s share price growth having consistently outperformed the rest of the market. The share price performance of AIM-listed technology firms over the period shows a +30% differential in comparison to the AIM All Share Index.
Amanda Flint, partner and head of executive remuneration at Grant Thornton UK, commented: “The substantial increases in technology share prices – particularly on the AIM market – does not generally seem to have been rewarded by performance linked pay for CEOs and CFOs in the sector.
“If the UK technology sector is to continue to attract and retain the ‘brightest and the best’, then it is crucial for remuneration packages to reward executives who create value for shareholders.”