AVERAGE bonuses for top company directors have risen by almost 200% in the last decade despite a big fall in share prices, according to a new study.
The High Pay Commission (HPC) found average annual bonus for a director in a FTSE 100 firm increased by 187%.
Lead executives received a bonus worth 48% of salary in 2002 but last year, for the same level of performance, it had jumped to 90%.
At the same time, their salaries increased by 63%.
The average value of long-term incentive plan awards for top executives across the FTSE 350 shot up by 700% since 2000.
The average total earnings of directors in state-supported banks were just under £4m last year, compared with £1.7m in 2000, up by 130%.
Deborah Hargreaves, HPC chair, said it exposes the myth that big bonuses and salaries create better company performances.
“There has been massive growth in performance-related pay yet no leap forward in company performance.”
