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14 February 2013

News - Top bosses face bonus cuts

By SalesProEd @ 20:48 :: 920 Views :: 0 Comments :: Article Rating
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The bosses of the UK’s top companies are facing significant bonus cuts but are still expected to receive windfalls worth 60% of their salaries, according to research, according to MSN News.

Less than 10% of FTSE 100 firms are planning to increase bonuses, with 17% predicting payouts will fall by more than a quarter, a survey by PricewaterhouseCoopers (PwC) revealed.

Nearly half of firms believe bonuses will hold firm, while PwC said companies were bowing to pressure to "exercise restraint" after bonuses had crept up to around 80% of pay before the financial crisis struck.
According to research from the Incomes Data Services, FTSE 100 chief executives enjoyed an average bonus payout of £707,000 in 2007/8.
Tom Gosling, head of PwC's reward practice, said bonuses were expected to fall to 60% of pay as the "calls from shareholders for pay and bonus restraint appear to have hit home".
The PwC survey found that 38% of companies surveyed also predicted a pay freeze for their highest fliers - a record number since the 2009 financial crisis, although only 15% predicted a cut. However, 52% said salaries will rise by 3% to 4%, and 10% predicted a sharper increase.
Mr Gosling warned against expectations for pay and bonuses to fall dramatically. He said: "There is no doubt that the intense shareholder, public and political focus on executive pay over the last 18 months has caused a change of approach.
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