Top bosses earning top whack

News Article - 02 October 2007
Category: Business

The top finance directors are seeing increases in pay that far outweigh those of the majority of employees, a new study has revealed.

Data from KMPG, one of the big four accountancy firms, found that high-level positions such as finance directors and chief executives are commanding average pay increases of 16 per cent, up from nine per cent last year.

Chief executives of firms in the FTSE 100 are now remunerated to the tune of a cool £2.6 million per year, a rise from the £2.3 million they received a year previously.

Mary Carter, a partner at the accountancy firm, warned that the gap between possible reward and actual attainment is narrowing, suggesting that attainment structures are not stretching post holders enough.

"Incentives need to be clear and concise signals to participants as to what kind of performance is valued," she commented.

"Targets are often set to pander to investors' understanding at the expense of effectiveness."

KPMG recently stated that companies are putting greater focus on IT risk issues.

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