NON-EXECUTIVE directors sitting on pay committees have given them themselves an average pay increase of more than 8% in the last year, according to Income Data Services.
Most non-executive directors in the FTSE 100 were awarded pay rises of 2.8%, pushing their average wages to around £65,816 last year. But those on remuneration committees received 8.8% increases.
The average increase in additional fees for senior independent directors was 7.6%, while chairmen saw an average increase in their fees of 4.9%.
While not all businesses review their NED fees every year, the IDS pointed out 57% of companies this year did not increase their NED fees, a larger proportion than for the same period last year.
“While fees for FTSE 100 NEDs are continuing to increase, the overall pace of growth seems to have slowed,” says Nasreen Rahman, assistant editor at IDS. “However, NED remuneration is built up by taking on extra responsibilities, so many NEDs are still seeing fairly sharp increases in their fees.”
“The substantial increases for remuneration committee members in particular may reflect new legislation giving shareholders a greater say in executive pay in listed companies. These changes may be seen as making the responsibilities of the remuneration committee more onerous.”