Britain's Top Executives See Pay Rise 45%, Median Pay Tops £1m

Strategic Insights -

Britain's top 100 executives collected a total of £160m in pay last year, a 45% increase from £110m the previous year, according to a Sunday Times analysis. JAN LESCHLY, chief executive of SmithKline Beecham, gained a 300% pay rise, making him the most "overpaid" executive for the third year running, with total pay of £27m. LESCHLY's package alone amounts to 16% of the total rewards paid to the 100 leading executives.

Key Takeaways:

  • The top executives with Britain's 100 biggest quoted companies collected a total of £160m in pay last year, a 45% increase from £110m the previous year.
  • JAN LESCHLY, chief executive of SmithKline Beecham, gained a 300% pay rise, making him the most "overpaid" executive for the third year running, with total pay of £27m.
  • LESCHLY's pay package alone amounts to 16% of the total rewards paid to the 100 leading executives.
  • Median pay, including bonuses and share incentives, has risen above £1m, up 26%.
  • Only last month John Edmonds, president of the Trades Union Congress, accused bosses of being "greedy bastards" over lavish boardroom rewards.
  • Sir William Purves, a former chairman of HSBC Holdings, earned just over £1m last year, modest by banking standards.
  • Marjorie Scardino, chief executive of Pearson, was paid £707,000 in salary and options, an underpayment of £559,000, according to the analysis.

Statistics:

  • Total pay for the top 100 executives: £160m, up 45% from £110m the previous year.
  • JAN LESCHLY's total pay: £27m.
  • MESCHLY's pay package alone: 16% of the total rewards paid to the 100 leading executives.
  • Median pay: £1.06m, up 26% from the previous year.
  • The most "overpaid" executive is JAN LESCHLY, with a pay rise of 300%.
  • The lowest-paid FTSE 100 index company boss in absolute terms is Ian Henderson, managing director of Land Securities, who made £343,000.

Sources:

  • "Sunday Times executive pay survey".
  • The Sunday Times, 1998.