Non-executive directors’ fees stall, says PwC

Non-executive directors in UK FTSE 100 companies have seen a fall in the rate of fee increases, according to recent figures from PwC. Median fees increased by 3% in 2015, compared with 7% in the previous year, resulting in the lowest rate of fee increase since the survey started in 1999. In 2015, two-thirds of FTSE 100 companies conducted a fee review and, of these, 50% made changes to base fees. PwC finds that companies are moving away from substantial fee adjustments every two to three years in favour of smaller increases each year.

Fiona Camenzuli, partner in PwC’s reward and employment team, said:

‘The 2015 data suggests that there has been a conscious decision to align practice for non-executive director fee increases with that of the executive team and the rest of the workforce, through more gradual fee increases. The environment has changed and boards are mindful of the broader debate on fair pay and the likely impact on their 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 2015. For more findings from the survey, please visit: http://pwc.blogs.com/press_room/2016/01/ftse-100-n...