We are right in the middle of the main reporting period for directors’ remuneration and at present the team is busy populating our extensive database. As it stands, we have gathered information on over 300 companies, but our aim is to cover at least 700 companies from the FTSE 350, SmallCap, AIM and Fledgling Indices as well as some of the top Global companies from the FT 500 list.
Serco CEO waived payment of a bonus worth £908,438 in the latest financial year.
Petrofac CEO volunteered not to be considered for a bonus in 2014, so received none.
Remcom data shows Barclay’s average incentive per group employee = £14,100 (2013: £17,000); per investment bank employee = £51,400 (2013: £61,000).
Remcom data shows Barclay’s average incentive award per group employee excluding the investment bank and non-core = £6,900 (2013: £7,600).
Royal Bank of Scotland reports that over the last five years bonus pools are down by around two-thirds and by nearly 90% within its investment bank.
RBS’s bonus pool fell by 27% in 2014 with over 90% of payments directed to those below the most senior RBS employees.
RBS said its average bonuses were quite modest with 51% of staff receiving £2k or less and 22% receiving less than £5k.
RBS also reported that operating within the CRD IV 1:1 variable pay cap had proved to be 'manageable to date'.
HSBC’s remcom says regulatory changes related to pay are excessive and hinder ability to communicate remuneration policies and structures.
RBS added that overall, recruitment into specialist roles had not been as difficult as anticipated although certain ‘hotspots’ remained.
In 2014, Lloyds Banking Group’s remuneration committee exercised discretion by applying a reduction to the bonus award for its Group CEO.
Unilever’s remcom exercised its judgement to uplift the annual bonus outcome from 68% to 80% of target in the latest year for its CEO and CFO.
Shire's Remcom intends to make CEO LTIP awards of 840% of salary to recognise the gap in pay relative to Global Biotechs & US BioPharmas.