But pay rises for top managers decrease
Companies are placing more emphasis on performance-related pay by awarding executives bigger bonuses but limiting salary increases, new research claims.
The average annual bonus for executive directors and senior executives increased last year to 41 per cent of their salary, up from 39 per cent in 2004, a survey of 44 UK companies by Mercer HR Consulting found. In the same period, their average salary increase dropped to 5 per cent, down from 6 per cent.
The pay-for-performance trend continued with the finding that performance share plans are replacing share options as long-term incentives. The proportion of companies offering share options to senior management during the year dropped from 48 per cent to 33 per cent, while 36 per cent of companies offered performance share plans.
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