Top executives' earnings up 27%

[dutchman]

Senior executives in the UK's biggest companies have seen their average earnings go up by more than a quarter in the past year.



New research suggests the bosses of top firms made an average of £4m a year.

But Incomes Data Services, which compiled the figures, says pay and bonuses have hardly risen at all.

Instead the increase is due to a rise in value of long term incentive plans which have replaced cash bonuses.

The study looked at the earnings of directors of the 100 largest companies quoted on the London stock exchange, in the 12 months to June.

It showed that increases in basic pay and bonuses slowed almost to a halt - with pay rising in line with inflation, and bonuses falling.

However, earnings still increased by an average of 27%, largely due to the introduction of long term, share-based incentive plans for executives.