The increasing use of performance-related incentives has led to an overall fall in the average remuneration of the bosses of Britain's largest companies, new figures have revealed.
The increasingly demanding performance conditions imposed on the long-term incentive plans of FTSE 100 chief executives means that their total remuneration has fallen on average by 7 per cent to £2.1m, according to consultants Watson Wyatt.
But its 2005 Executive Reward Survey also found that the average basic salary and bonus for a FTSE 100 chief executive have continued to rise this year, by 9.1 per cent and 29 per cent per cent respectively.
These increased bonuses have been paid out this year to reward an average increase in profits last year of 20 per cent. But because the value of their long-term incentives has in many cases been reduced, the figure for average remuneration has also fallen.
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