UK FDs see salaries increase by 4.7%

UK-based finance directors (FDs) have seen their pay increase by almost five per cent on average in the last year.

Research by Incomes Data Services (IDS) looked at the remuneration offered to FDs at FTSE 100-listed companies and discovered the typical pay packet was £1.7 million per annum - this figure includes salary, bonuses, share option profits and incentive payments, Accountancy Age reports. 

In terms of salary, an average three per cent rise to £502,000 was recorded. It highlights how people employed in top-level companies are still being rewarded handsomely for their unique skill set.

NasreenRahman, assistant editor at IDS and author of the report, noted FDs now have to take on a lot more responsibility than in the past, as they are expected to influence decisions in commercial, strategic and regulatory issues.

"Listed companies are now finding that it can be difficult to find someone appropriate for their finance director positions, as there is a limited pool of candidates with the breadth of skills and experience now required for the role," he added.

The expert stated the paucity of quality candidates means those who do fit the bill can expect to command a significant salary and this situation is unlikely to change anytime soon.

Companies listed on AIM - the international market for smaller growing companies - are responsible for the steepest level of growth in salaries, with pay typically swelling to £143,000, which represents an increase of 5.9 per cent.

An example of the challenges facing financial directors can be seen with the issue of producing reports for boardrooms. Typically, board members are expected to sift through a lot of information.

However, managing director for Digital Boardbooks Charlie Horrell thinks one solution to this problem could be to create a board portal, which would offer people an easily digestible format for lifting the salient points from in-depth publications ahead of any meetings.