2015 Salary Survey Results Revealed
Half of the UK’s finance directors saw their pay increase over the last 12 months, according to a wide-ranging industry survey.
The results of the 2015 FD Recruit salary survey have been collated and analysed to provide thorough insight into the salary, bonuses and other incentives given to finance directors working today.
The salary survey gives a fascinating breakdown of remuneration packages of finance directors, with 50% of respondents reporting a year-on-year increase in their earnings. In addition, 42% said their remuneration had remained roughly the same over the previous year.
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 most common form of remuneration outside of basic salary were bonuses related to the company’s overall performance, which were earned by 74% of respondents. In addition, 47% received bonuses relating to their own individual performance.
The range of bonuses paid out last year varied greatly. While just over 10% of respondents didn't receive any performance-related incentives last year, bonuses accounted for an average of two-thirds of total remuneration for the top 10% of bonus earners. Taken as a whole, the average bonus paid out to finance directors last year was 20% of basic salary and represented 15% of total earnings.
The average employer pension contribution for a finance director in 2014 fell across the year, with the average somewhere around 7%, down from 10% the previous year. The number of individuals who received no pension contribution rose to 12%.
The survey saw an increase in the number of respondents receiving benefits such as life insurance (up to 55%), medical and dental cover (68%) and gym membership or other health plans (up to 12%).
Vehicle, fuel or transport costs, covered as part of remuneration, were offered to 56% of respondents, down from 62% last year.
2014 industry averages:
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
The survey found that the average base salary across industries and regions was between £90,000 and £160,000, climbing to between £120,000 and £180,000 once additional benefits and bonuses had been included.
Phil Scott, director of FD Recruit which produced the results, said: “The 2015 FD Recruit Salary Survey provides a fascinating and positive snapshot into the trends of finance director compensation”.
“In a related survey last year, we discovered that finance directors and their companies had been growing and succeeding ahead of expectations, so it is good to see that these results are being translated into remuneration for the individuals who are driving this success”.
Phil added: “It is also interesting to note the changing trends in remuneration. Monetary rewards will always be key, as individuals have mortgages and other existing commitments, but health and wellbeing related rewards continue to grow in prominence. Performance-related bonuses remain popular in an era where some companies try to avoid promising too much, and as such tie incentives to their success.”
Date Posted: April 30th 2015
Posted By: Paul Greenhalgh