Finance chiefs of FTSE 100 companies enjoy an average pay packet of £1.7m a year, after those in this key role at UK-listed firms saw an inflation-busting 4.7 per cent average pay hike in the past year.
That’s according to figures published by research firm Incomes Data Services (IDS), which also reveal an especially stark increase in the pay packets of finance bosses at companies listed on the junior market, Aim.
These businesses saw the fastest growth in finance directors’ salaries, with an average increase of 5.9 per cent in the last year, taking their average salary to £143,000 and pay to £174,000 when bonuses, share-option profits and incentive payments are included.
But clearly being a number cruncher at the helm of a FTSE 100 firm is the place to be to receive top dollar: the average pay of £1.7m per year includes salary, bonuses, share-option profits and incentive payments, but the mean salary alone was £502,000, a 3 per cent increase over 2012.
More compliance in UK firms has led to a shortage of qualified, experienced candidates, pushing up salaries, according to IDS.
Nasreen Rahman, the author of the report, said: “Listed companies are now finding that it can be difficult to find someone appropriate for their finance director positions, as there is a limited pool of candidates with the breadth of skills and experience now required for the role – pushing up the value of those that do have the qualities that businesses are looking for. This small, elite group can command very high salaries, which continue to grow.”
While the salaries of FTSE 100 finance directors make up 13 per cent of total earnings, with more performance-related pay, their Aim-listed counterparts receive 49 per cent of their earnings as salary.