SALARIES for FTSE 100 CFO’s increased by 2% this year, the same amount as in 2015, according to PwC’s early season review of executive pay trends.
The Big Four firm analysed the first 47 FTSE 100 remuneration reports for 2016 and has found “continued restraint” in the salaries of both CFOs and CEOs.
Fiona Camenzuli, reward and employment partner at PwC said this figure is a result of remuneration committees making “tougher judgements” on pay outcomes, combined with greater inspection of performance targets.
64% of companies in the sample provide full disclosure (threshold to maximum targets) for financial measures in the annual bonus and 95% provide at least some detail on targets set. This responds to the Investment Association and Institutional Shareholder Services guidance on retrospective disclosure of bonus targets.
“Shareholders expect total pay-outs for the year to be a fair reflection of overall performance and greater transparency,” continued Camenzuli.
“The improvement in the quality of bonus target disclosure has been a triumph of collective shareholder action – the result is a definitive move to a market norm of full retrospective target disclosure to enable investors to assess the toughness of targets.”
This news comes just days after Co-Operative Group boss Richard Pennycook asked for a 40% cut in his base salary because the job has become easier.
According to Financial Director’s Salary Survey 2016, Britain’s top finance bosses saw their personal fortunes more than double since 2009.