Company director bonuses have fallen by an average of 23% over the past year, according to a study by the Chartered Management Institute (CMI).
The CMI’s National Management Salary Survey 2014 found that among over 68,000 executives, the average bonus for 2013 to 2014 was £49,767.
This is the lowest figure for several years, with executive bonuses averaging £68,043 for the last decade.
The number of directors receiving bonuses has also dropped. Between 2006 and 2008, 85% of directors were awarded bonuses, while only 53% have received one over the last year.
Other key findings:
- executive pay rose 2.5% over the last year, down from the 3.9% rise recorded for 2011 to 2013
- the average executive salary is £42,230, compared to £42,710 12 months ago
- manager pay has increased 27% this year to an average £38,081.
Ann Francke, chief executive of the CMI, said:
“For most directors, this year has seen payouts reduced, putting 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.”