Employee Benefits Live: Reward for FTSE 100 executives has almost doubled in five years

The remuneration package of FTSE 100 executives has almost doubled in five years which has raised questions over whether reward is matched with company performance.

During his session on creating reward packages for high earners at Employee Benefits Live, Stephen Cahill, a member of the Chartered Institute of Personnel and Development (CIPD), said the average value of a FTSE 100 executive’s package in 2005 was around £3 million, compared to £5.5 million in 2010.

Cahill also highlighted that many executives had received salary increases above 5%, compared to the 2% or 3% rises seen by the general workforce. Bonus payouts have increased to 84% of the maximum that can be achieved. Meanwhile, the maximum bonus that can be achieved in FTSE 100 companies has increased by 17%.

Cahill asked whether these increases had fulfilled organisations’ performance criteria. He said: “Lower down in organisations we have seen a much more even distribution between good, better than good and outstanding performers.”

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