City bonus 'good times' are back with dramatic rises
Boardroom bonuses are increasing again, with payouts to leading company directors increasing by 22% in recent months, research showed today.
Annual bonus payments to directors in FTSE 100 firms increased from £456,000 to £558,000 in the last six months, according to a study by Incomes Data Services.
It is a dramatic recovery from last year when payments fell by almost a third.
Basic salaries increased by 7% on a year ago for FTSE 100 directors and by 5.1% for directors of all companies listed on the stock market, according to the study.
The 5.1% jump was modest compared with rises granted to directors in previous years, but it was still bigger than increases to the rest of the workforce, said IDS.
Steve Tatton, of IDS, said: "It appears that all the signs are that after a period of relative austerity, the good times have returned to UK boardrooms.
"While not all UK listed companies have yet published their annual reports and the final picture is yet to emerge, the trend seems clear.
"On the back of a wave of incentive redesigns and recalibrations, coupled with the first signs of economic recovery, all the signs are that boardroom bonuses are recovering at a much faster pace than anticipated."
The report was based on a study of 237 directors.
