16% rise in directors' pay

A new report from Incomes Data Services (IDS) shows that the directors of FTSE 350 companies saw their pay rise by an average 16.1% in the year to June 2004.

IDS's Directors' Pay Report 2004 looked at the pay of 1,360 executive directors in the top 350 listed companies. It found that their basic salaries rose by 9%, but that bonuses - accounting for 76% of directors' pay - took the increase to 16.1%.

Among FTSE 100 companies, average basic salaries for chief executives were £625,000 a year, with incentives and bonuses taking total pay to £1.2 million. And FTSE 100 finance directors' average earnings were £700,000.

TUC general secretary Brendan Barber said: "It's the same old story of inflation-busting pay increases for directors, while employees get left further and further behind. But such corporate excess is not just down to the greed of top executives; investors must take their share of the blame."

The 16.1% increase compares with a 4.3% rise in average earnings for all employees in the same period.