FD Focus - Finance chiefs get bumper pay rises

Finance directors of large companies are more likely than their bosses to get an inflation-busting pay rise this year, new research suggests.

A study by KPMG has found that the median total compensation package for an FD of a FTSE 100 company has gone up by 22%, compared with a more modest 3% increase for chief executives.

According to the Big Four firm, which analysed 53 FTSE 100 companies with December 2006 or January 2007 year ends, listed companies are reacting to investor concerns about sky-high executive salaries.

In 2007, the median earnings of a FTSE 100 FD are £1.7m, compared with £1.4m in 2006.

The premium pay rises awarded to FDs suggest they are becoming increasingly valued, said Carl Sjostrom, a partner in KPMG's performance and reward team. He added that mergers and acquisitions may have led to FDs taking 'a more strategic role on the board'.

Meanwhile separate research by Heartwood Wealth Management found that FTSE 100 finance chiefs have an average personal wealth of £4.7m tied up in company assets, sharing around £487m between them.

According to corporate research company BoardEx, the UK's richest FD by business assets is Colin Day, CFO of cleaning company Reckitt Benckiser, who has £32.4m tied up in company wealth.

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