3% fee increases for non-execs – PwC

Non-executive directors (NEDs) in FTSE 100 companies received an average 3% increase in fees in 2016, according to PwC’s annual report. Median base fees increased from £65,000 to £66,000 as a result, whilst fees for chairs increased by less than 2% to £400,000 at the median.

PwC explains that the 3% average increase for non-executives last year was the result of growing numbers of companies opting for annual fee reviews, rather than more substantial fee adjustments every two to three years. For example, around 45% of FTSE 100 companies reviewed and increased NEC fees in 2016.

Marcus Peaker, partner in PwC’s reward and employment team, said:

‘The 2016 data suggests that there has been a conscious move to align adjustments in NED fee increases with that of the executive team and the rest of the workforce, through more gradual, smaller fee increases. Amidst the broader debate on fair pay, employers are mindful of the impact of perceived pay excess on reputation and brand.’

PwC’s non-executive director fees report is based on information from FTSE 100 companies reflecting data from annual reports published during 2016. For more information, please visit: http://pwc.blogs.com/press_room/2017/01/non-executive-directors-face-increasing-demands-that-are-not-translated-into-pay-.html