Salary survey results revealed
The 2014 FD Recruit Salary Survey has given a fascinating insight into the salary, bonuses and other incentives given to finance directors across the UK and throughout a wide range of industries.
The findings show that almost all remuneration packages last year were made up of between 75% and 85% base salary with the rest made up of performance-related bonuses.
Packages were broken up as follows:
The average bonus paid out to finance directors in 2013 was 20% of basic salary and represented 15% of total earnings.
The majority of answers given on the survey fall between zero and 45% of basic salary, although some reported up to 100% of basic salary.
The average employer pension contribution for a finance director in 2013 was 10% of basic salary with the majority falling between the 5% to 13% range.
Car or car allowance
On average, just 24% of finance directors in Greater London received a car or car allowance, with a majority citing that travel costs had been rolled up into their basic salary.
By contrast, 64% of respondents outside of London received a car or a car allowance, with an average worth of £8,000.
2013 UK average breakdown of an FD package:
Basic + car allowance 75% of total earnings
Bonus 15% of total earnings (20% of basic)
Pension 7.5% of total earnings (10% of basic)
Other benefits: 2.5% of total earnings
Few finance directors are taking up options such as health club memberships or cycle to work schemes. The majority of other benefits that were taken advantage of included; healthcare plans and medical packages.
The survey found that the average base salary across industries and regions was between £80,000 and £130,000, climbing to between £110,000 and £150,000 once additional benefits and bonuses had been included.
Just short of half the respondents said their package was “about the same” as last year and the same number again said they had seen an increase of up to 5% over the previous 12 months. A small number had seen gains of between 10% and 20%.
FD Recruit director Phil Scott said: “This wide-ranging survey has shown that in a post-recession era, finance directors are still very much focused on the monetary aspect of their take-home rewards. There has been a small increase in salary levels over the last year, which is positive, but individuals may be too focussed on honouring their pre-existing mortgages and other financial commitments to find much value in alternative forms of remuneration.”
For a full breakdown of regional variances see our 2014 Finance Director Salary Survey >>
Also watch this space for May’s article ‘Incentivising Senior Financial Executives’
Date Posted: April 9th 2014
Posted By: Sam Jordan