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EDITIONS
Friday, 18 October, 2002, 13:39 GMT 14:39 UK
UK directors earn 10% pay rises
Sterling notes
Top managers are in the money
Average pay earned by top directors at leading UK companies has for the first time topped the 1.5m mark.

The chairman of Marks and Spencer, and the head of crisis torn holiday company MyTravel, have been amongst the biggest boardroom winners of executive pay rises.


If UK boardrooms thought they have had a tough time over the last two years, it is going to get harder

Incomes Data Services
A report from Incomes Data Services (IDS) found that leading executives of companies listed on the FTSE 100 enjoyed an average pay rise of 9.7%.

While this is a slower jump than in previous years, it still outstrips that enjoyed by the majority of employees.

However, IDS said the introduction of increased scrutiny of director accounts by the end of the year would raise pressure over pay decisions.

The IDS report into directors' pay found that the average earnings for leading executives has now hit 1.6m, while directors can expect an average package of 600,000.

The sum includes salaries, long-term incentive payments and gains from share options.

Biggest winners

Luc Vandevelde, chairman of Marks and Spencer received a 1.36m cash bonus for helping to turn around the fortunes of the retailer.

He was followed closely in the pay stakes by David Crossland, chairman of MyTravel who pocketed a 70% pay rise for the year ended September 2001.

Luc Vandevelde chairman of Marks and Spencer

Mr Crossland has recently overseen an 85% fall in the value of the travel groups shares.

In addition, executives in the oil and gas industry fared well, although almost 20% of all directors enjoyed a cash boost of more than 25%.

Nonetheless, IDS said that new UK laws from the end of the year would force companies to give more thorough details of their pay policies.

"If UK boardrooms thought they have had a tough time over the last two years, it is going to get harder as the law seeks to put directors' pay decisions under greater scrutiny," said the report.

Women take back seat

At the same time, a report from the Equal Opportunities Commission (EOC) suggested that the pay gap between men and women in Britain remained wide as ever.

Statistics indicated that women working full time earned 81% of the average full-time male wage, the commission said.

"Britain's woeful record on pay has to change if we are to see a more equal society," said the EOC.

 WATCH/LISTEN
 ON THIS STORY
The BBC's Matt Heavens
"On the face of it the men that run the UK's FTSE 100 companies have never had it so good"
See also:

22 Jul 02 | Business
10 Sep 01 | Politics
29 Aug 01 | Business
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