FD Salary Survey results revealed
The FD Recruit Salary Survey results have been collected, crunched and analysed, revealing average pay and the most favoured types of bonuses and incentives.
Finance directors throughout the UK from a variety of industries contributed to the study, which is produced each year by personnel specialist FD Recruit to allow employees and employers to negotiate fairer pay and to inform the industry as a whole of emerging trends.
Of most interest is the average basic pay of FDs, which ranged from £90,000 and £160,000. After bonuses and other incentives had been included, average remuneration ranged between £120,000 and £180,000.
The findings show that almost all remuneration packages of respondents were made up of between 75% and 85% base salary, with performance-related bonuses accounting for the largest share of the rest.
Bonuses relating to the company’s overall performance were the most popular, earned by 70% of respondents. Bonuses based on individual performance were slightly less popular, at 52%.
The average bonus paid out to finance directors was 20% of basic salary and represented 15% of total earnings. However, some FDs did not receive a bonus at all last year, while at the other end of the scale, one FD earned just over 60% of their take-home pay through their bonus scheme.
Vehicle, fuel or transport costs, covered as part of remuneration, were offered to 60% of respondents, while medical and dental cover was offered to 58% of FDs.
Life insurance and pension contributions were received by 55% and 15% of respondents, while gym membership or other health plans were included in the remuneration of 12% of FDs.
The value of pension contributions, where offered, averaged 7.5% of total earnings, and all other benefits totaled an average of 2.5% of total earnings.
Phil Scott, director of FD Recruit, said: “The results of this year’s salary survey show that monetary benefits continue to prove the most popular among FDs, especially because individuals have commitments, such as mortgages, which they need to meet.
“Bonuses are still a popular method of determining the total value of a remuneration package by employers, as it allows them to link their outgoings to the fortunes of the company.”
Scott added: “All in all, the annual salary survey delivers important insight into salaries for FDs across all sectors and locations. Employers and individuals benefit greatly from studying these findings as it allows them to market themselves appropriately to find their perfect match.”
Date Posted: June 29th 2016
Posted By: Phil Scott