Business

FTSE 100 executive bonuses close to pre-crisis levels

Notes of pound sterling
Image caption Deloitte says the average bonus for FTSE 100 executive directors is 100% of their basic salary

Executive bonuses are close to their level before the financial crisis, a survey by business advisory firm Deloitte says.

It found that the average bonuses for directors of FTSE 100 firms amounted to 100% of their basic salary, rising to 140% in the top 30 public companies.

However, Deloitte said the days of fast increases in executive salaries were over for the present.

And in mid-sized FTSE 250 firms, one in seven paid no bosses' bonus last year.

While bonuses are set to be higher than last year in FTSE 100 firms, they will be lower in FTSE 250 companies, the report said.

'Political consequences'

The survey found that more than 50% of top companies would not increase the pay of executive directors in 2010 - which will be the second year in which many executives have had their wages frozen.

Any pay increases this year were likely to be about 3%, it said.

"Last year we saw a very large number of companies freezing executive salaries, but at the time it was difficult to predict whether this was a one-off," said Stephen Cahill of Deloitte.

"Now it appears that the years of executive salaries increasing at rates far in excess of inflation and the increase in average earnings are, at least for the moment, well and truly over.

"Companies are now recognising that increases for executives must be considered fair and reasonable in the context of current business circumstances and the pay and conditions for employees more generally."

Separately, the Mayor of London, Boris Johnson, has backed comments by the leader of the RMT Union, Bob Crow, that attacked bankers for accepting large bonuses.

Mr Johnson told the BBC: "Those distinguished, intelligent, highly remunerated people have got to understand the political consequences of doing nothing about the huge bonuses they are about to receive."

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