Nine in ten executive directors get bonuses in 2017 – KPMG

Around one in five executive directors of FTSE 350 companies had their salaries frozen in 2017, according to a guide to directors’ remuneration from KPMG. However, the overwhelming majority (90%) received an annual bonus and in a third of cases, the bonus was over 80% of the maximum opportunity available in the respective bonus plan.

Shareholder focus is currently firmly on better alignment between the pension provision of executives and that of the wider workforce, with the result that the medium maximum employer contribution to the defined contribution pension plans of executive directors fell by 7% last year. Median long-term incentive awards were 245% and 166% of basic salary for chief executives of FTSE100 and FTSE250 companies respectively and around a third of companies introduced, or increased, post-vesting holding periods in incentive plans.

‘Gains under long-term incentive plans account for about a quarter of the overall remuneration package for chief executives in the FTSE 350 while benefits and pensions account for around 7%. The investor and regulator have increasing focus on the quantum of pay allocated to pension.’

‘Guide to Directors’ Remuneration 2017’, KPMG, December 2017 [PDF]: https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2018/01/2017-kpmg-guide-to-directors-remuneration.pdf