Salaries rise 5% in six months

EXECUTIVE salaries increased by an average of just over 5 per cent in the six months to the beginning of January, according to research by recruitment consultants, imbucon.

The average executive salary in the period was £34,975 while the average remuneration package, when fringe benefits were included, was 5.87 per cent higher at £37,941.

Company directors got an average salary increase of 5.36 per cent while the average increase for senior executives and managers was 5.29 per cent, according to the survey.

Some 175 companies provided information to imbucon on the remuneration packages of 2,191 executives. The average increase of 5.08 per cent compares with a rise of 5.25 per cent in average salaries of executives for the preceding six months and with an inflation rate of 2 per cent over the period.

The salaries of managing directors rose by an average of 5.01 per cent, to give an average salary of £67,476, according toe" the survey. When other benefits such as cars, bonuses, share options and special pension arrangements were included, the average remuneration of managing directors rose by 7.5 per cent to £78,424.

Salaries of executive directors rose by 5.48 per cent to an average of £51,388. Their remuneration package increased by 5.89 per cent to an average of £57,471. The average salary increase for heads of major functions, such as financial control, was 5.21 per cent higher at £40,801 while their remuneration package rose by 6.3 per cent to £44,254.

The salaries of senior management were 5.43 per cent higher at £31,889 while their average remuneration package was 6.28 per cent higher at £34,425. Middle management salaries rose by 4.32 per cent to an average of £25,876 while their remuneration package rose by 5.02 per cent to £27,099. Lower management salaries rose by 5.32 per cent to £20,764 with a 5.87 per cent increase in the total remuneration package rose by 4.76 per cent to £21,370.

Of the 175 companies which took part in the survey, 123 were subsidiaries of multi-national companies. Of these 123 companies, 47.2 per cent were US-owned. 21.1 per cent were British-owned, 22.7 per cent had parent companies based on the Continent, with the remainder owned by companies based elsewhere throughout the world.