Chief executives 'rewarded with bonuses and incentives'

News Article - 09 January 2008
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Over 70 per cent of chief executive remuneration in financial services firms is paid through long-term incentives and bonuses, it has been found.

Mercer's Pan-European Financial Services Executive Compensation Guide found that during 2006-07, banking chief executive officers received €1.15 million (£0.86 million) median base salaries and total bonus payouts of 164 per cent.

Compensation for executives in the financial services industry is becoming increasingly linked to performance, commented Vicki Elliott, worldwide partner and global financial services industry leader at Mercer.

Mark Hoble, a partner in Mercer's UK executive compensation team, added: "There has been a more pan-European approach to executive pay decisions.

"This has been driven by mergers and acquisitions activity, the expansion of financial services operations across Europe and the hunt for key executive talent."

According to a report by PricewaterhouseCoopers, 57 per cent of executive bonus schemes are measured with non-financial methods including environmental concerns and employee engagement.

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