'Fat cat' bosses slammed for lavish pay increases

Report claims FTSE 100 directors awarded themselves pay rises of 49 per cent over the past year

FTSE 100 directors have come under fire as an independent report revealed they have awarded themselves pay rises of 49 per cent in the past year.

According to Sky News, the study of FTSE 100 companies by Incomes Data Services (IDS) showed the 49 per cent increase, covering salary, benefits and bonuses, was higher than the 43 per cent seen by chief executives.

The news comes as other reports reveal average households are suffering the biggest squeeze on incomes since the 1920s, with FTSE bosses expected to earn £2.7m on average – 113 times the national average of £24,000 in the private sector.

Most private sector workers have been lucky to get a three per cent rise at best, with vast swathes of employees either seeing pay freezes or pay cuts since the recession first hit in 2008.

Steve Tatton of IDS told Sky News: “Britain’s economy may be struggling to return to pre-recession levels of output, but the same cannot be said of FTSE 100 directors' remuneration.

“The generous remuneration packages that FTSE 100 directors now receive indicate a marked improvement in boardroom fortunes,” he added. “But with closer scrutiny of boardroom pay expected in the future, remuneration committees will have to make sure that they are able to provide full and thorough justifications for the bonuses awarded.”