Executive Remuneration and banks

I have blogged elsewhere briefly about executive remuneration see here.

According to a recent survey from Manifest, see here, executive pay was up by 10% in FTSE 100 companies in 2011 but in more than 25 companies the rise was greater than 41%.

So, who is dragging this figure up? Such averages would suggest outliers. So from my data of 30 FTSE 100 companies over 5 years 2006-2010 below are two tables of accumulative executive remuneration. The first is the mean and median of executive remuneration which includes: Salary and benefits, annual bonuses, share options exercised, and estimated value of long term incentive schemes.

The second table is the mean and median of executive remuneration from the banking sector.

Executive Remuneration FTSE 100	2006	2007	2008	2009	2010
Mean	£13252224	£14015869	£12873733	£12842835	£15786086
Median	£10688919	£12181900	£11690076	£8715581	£13254605

Executive Remuneration FTSE 100 (banking sector)	2006	2007	2008	2009	2010
Mean	£26537106	£27249329	£25528610	£18476199	£25184382
Median	£23432917	£22214810	£22349487	£17130259	£22695000

Thus it is no great surprise to find the banking sector is the one that is dragging up remuneration. The mean between 2009 to 2010 itself saw an increase of 26.6%. However, this data is only descriptive and accumulative. Further evidence from the data also shows a significantly larger ratio of long term incentives to base salary in the banking sector. Thus, whilst the figures are high not all of the figure represents money earned. The long term incentive schemes is merely an award that is subject to performance and service conditions, see here for a little more detail.