Special Report - FTSE 100 finance directors' pay survey - The million pound club

Liz Fisher.
The number of FDs breaking the million pound club has increased again - and they are all male.

The number of finance directors who break the magic 1m remuneration barrier has increased once again this year. Fifteen FDs received more than 1m in salary and bonuses during their last financial year. This compares with 13 in 2003, eight in 2002 and six in 2001. Of the 15 finance directors, five are ICAEW members, two are ICAS members, two are management accountants and one qualified with the ACCA. Five have no accountancy qualification.

1. Peter Clarke, Man Group, 2.458m

Peter Clarke heads the list of the best-paid finance directors again this year, thanks to another impressive bonus from the group. Clarke's base salary rose from 279,000 to 295,000 during the year but he was awarded an annual bonus of 2.1m, an increase of 23% on the previous year. Clarke's bonus, however, was peanuts compared with the 4m paid to chief executive Stanley Fink. Pre-tax profits rose from 297m in 2003 to 434m in 2004. Clarke, a solicitor, joined Man Group in 1993.

2. Andrew Higginson FCMA, Tesco, 1.659m

2003 was a good year for Tesco, with sales increasing by 19% and pre-tax profits by 17%. The growth of the company was reflected in the directors' remuneration, with performance-related bonuses increasing the total paid to CEO Sir Terry Leahy to 2.977m and to chairman David Reid to 2.724m. Andrew Higginson's short-term bonus of 619,000 and long-term bonus of 462,000 pushes him closer to the top this year.

3. Ken Hydon FCMA, Vodafone Group, 1.538m

The executive directors of Vodafone had a good year and all received substantial bonuses under the company's incentive scheme. Ken Hydon's bonus of 776,000 is slightly down on the previous year's figure of 863,000. Vodafone's chief executive Arun Sarin received a total of 3.196m during the same year.

4. Colin Day ACCA, Reckitt Benckiser, 1.353m

A bonus of 870,000 brings Colin Day into the list of the million pound finance directors for the first time. Bonuses for the company's executive directors increased by three-quarters over the previous year because it exceeded its own net revenue and income stretch targets. In 2002, the company failed to meet its targets. Day joined Reckitt Benckiser in 2000 from Aegis Group, where he was group finance director.

5. Robert Dyrbus FCA, Imperial Tobacco Group, 1.345m

Awards from Imperial Tobacco's long-term incentive plan and share matching scheme of 347,000 and 351,000 respectively take him once again above the 1m barrier. He was also paid a cash bonus of 253,000. Dyrbus was appointed finance director of Imperial Tobacco Ltd in 1989 and finance director of the group following its demerger in 1995.

6. Paul Rayner FCA, British American Tobacco, 1.253m

Paul Rayner was awarded bonuses worth 600,000 during the year, half in cash and half through a deferred share bonus. He also received over 150,000 of benefits and allowances, including payments which followed his relocation to the UK from Australia two years ago. In last year's survey, relocation-related allowances of over 600,000 helped take Rayner over the 1m mark in his first year as finance director of British American Tobacco.

7. John Coombe FCA, GlaxoSmithKline, 1.237m

John Coombe appears on our list for the first time thanks to an increased yearly bonus, up from 457,000 in 2002 to 730,000 in 2003. GSK's pre-tax profits for the year grew by 15% on an increase in turnover of 1%.

8. Stephen Hester, Abbey National, 1.196m

Stephen Hester appears in the million pound list thanks to performance-related bonuses of over 600,000, 221,000 of which were made in shares which won't be paid for three years. Hester joined Abbey as FD in May 2002 and was appointed chief operating officer in February 2003.

9. Fred Watt CA, Royal Bank of Scotland, 1.11m

Fred Watt makes another appearance on the million pound list this year, although his total remuneration is down from the previous year, when he received a total of 1.433m. Watts' bonus for the year was 578,000, considerably less than the 966,000 awarded the previous year.

10. Peter Sands, Standard Chartered, 1.016m

Peter Sands joined the board of Standard Chartered in 2002 from McKinsey, where he was a director. His total bonus in 2003 of $1,022m includes a deferred bonus of $341,000.

11. Nick Rose, Diageo, 1.107m

Diageo changed the basis for calculating its performance-related bonuses during the last year - trading profit is now measured before exceptional items. Nick Rose's bonus for the year to June 2003 was 616,000, compared with 809,000 the previous year.

12. Byron Grote, BP, 1.1m

Byron Grote's base salary rose from $713,000 to $770,000 during the year and his bonus from $856,000 to over $1m. But the strong pound means his converted remuneration is down on last year. He was also paid a resettlement allowance of $175,000.

13. Jonathan Symonds FCA, AstraZeneca, 1.071m

Jonathan Symonds is another newcomer to the list, seeing his remuneration increase from 909,000 in 2002. He received a bonus of 451,000 during the year and an additional payment of 80,000 for pension-related tax liabilities. Symonds is a member of the Accounting Standards Board and chairman of the 100 Group of finance directors.

14. Douglas Flint CA, HSBC Holdings, 1.057m

ICAS member Douglas Flint missed the million pound list by a small whisker last year but a bonus of 450,000 lifts him above the 1m mark in 2003. Flint, a former KPMG partner, is a member of the ASB.

15. Andrew Lynch FCA, Compass Group, 1.033m

Andrew Lynch, an FCA, joined Travellers Fare as finance director in 1989. He stayed with Compass when it bought Travellers Fare in 1992 and joined the board in 1997. His performance-related bonus of 510,000 takes him into the list for the first time. It will be his last appearance in the FD list, however, since he was appointed CEO of Compass's international retail and travel concessions business in January 2004.

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