Bosses of the UK's biggest companies earn millions in "excess remuneration", a report by financial research firm Obermatt reveals. Pay packages designed to incentivise FTSE 100 chief executives had little effect on company performance.
The researchers compared profit growth and total shareholder return against the total realised pay earned by bosses between 2008 and 2010.
Reckitt Benckiser, ICAP, and BG Group are among the "worst value FTSE 100 companies" They found that former Reckitt Benckiser boss Bart Becht earned £138.6m more than the performance of his company justified - an 1,199% overpayment. Bosses at ICAP and BG Group earned £31.6m and £30.3m respectively in "excess remuneration"
Dr Hermann Stern, Obermatt chief executive, told the BBC: "We found that there was absolutely no pay-for-performance link in the UK for those three years. "Remuneration committees never want to pay below average. They are more worried about retention than performance. So this has led to spiralling pay inflation."
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The researchers compared profit growth and total shareholder return against the total realised pay earned by bosses between 2008 and 2010.
Reckitt Benckiser, ICAP, and BG Group are among the "worst value FTSE 100 companies" They found that former Reckitt Benckiser boss Bart Becht earned £138.6m more than the performance of his company justified - an 1,199% overpayment. Bosses at ICAP and BG Group earned £31.6m and £30.3m respectively in "excess remuneration"
Dr Hermann Stern, Obermatt chief executive, told the BBC: "We found that there was absolutely no pay-for-performance link in the UK for those three years. "Remuneration committees never want to pay below average. They are more worried about retention than performance. So this has led to spiralling pay inflation."
Source
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