Director Bonuses Down 23%

New data shows bonuses of company directors have fallen by 23% (from £64,594 to £49,767) over the last 12 months.

The figures from the National Management Salary Survey 2014 carried out by the Chartered Management Institute (CMI) and XpertHR are the lowest in several years, with the number of directors receiving bonuses also falling from 85% between 2006-08 to 53%.

The data also shows that executives across all levels have also been affected by the long-term reduction, with bonuses falling from 59% to 36%.

Following a survey of 68,599 executives in 279 UK organisations, although pay including bonuses rose for all executives by just 2.5% on average over the last year, this is less than the previous three years. Ann Francke, Chief Executive of CMI, said:

"The astronomical pay packages that have been making recent headlines are the preserve of a lucky few. For most directors, this year has seen pay-outs reduced, putting the brakes on the gap between top bosses and managers at other levels of our businesses. Many employees will hope that this marks the start of a new approach to bonuses and a move to share the benefits of growth more widely as the economy picks up.” 

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