Blue-chip bosses lag behind on salaries

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The Independent Online

Pay increases for chief executives of Britain's blue chip companies are lagging behind those awarded to their counterparts heading mid-cap FTSE 250 companies, a new survey out today reveals.

Pay increases for chief executives of Britain's blue chip companies are lagging behind those awarded to their counterparts heading mid-cap FTSE 250 companies, a new survey out today reveals.

The median salary for chief executives of FTSE 100 companies grew 9.7 per cent to an average of £477,000, according to the study carried out by New Bridge Street Consultants. However, their mid-cap counterparts achieved an increase of 10 per cent, taking their average base salary to £314,000. Mid-cap chief executives also scored bigger gains in total remuneration, which included bonuses and other emoluments. That saw the median total cash compensation package for FTSE 250 chief executives rise 15.8 per cent to £445,000. FTSE 100 chiefs saw their total compensation rise 13 per cent to £641,000 on average.

Management consultants attribute the gains obtained by mid-cap bosses to the increasing number of telecoms, media and technology growth companies, which have posted strong growth, driving up share prices with a knock-on impact on compensation packages.

Chief executives of general retail groups received the highest pay increases with annual base salaries climbing by an average 15.8 per cent to £375,000, and total pay jumping 27 per cent to an average of £555,000.

Sir Clive Thompson of Rentokil led all chief executives with a base salary of £950,000. Jean-Pierre Garnier, chief executive of SmithKline Beecham, received the highest cash compensation package of £2.147m.

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