Executive bonuses have doubled in 3 years
Annual bonuses have doubled in the last three years for executives at FTSE 350 companies as pay becomes ever more dominated by performance based elements, a study by accountancy firm Deloitte found.
Performance measures are increasingly aligned to a company's business strategy although total shareholder return (TSR) remains the most common form of performance measure, the report published on Wednesday said.
However, there is a growing move towards using a combination of TSR, earnings per share, and other tailored measures, such as return on capital employed and economic spread, the report said.
The report found there was an increasing trend across the board towards performance share plans, with packages more likely to be weighted towards the longer term in the largest companies. "Remuneration committees are focussed on ensuring that pay for performance means what it says," said Andrew Page, a director in the Deloitte remuneration practice.
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