Business gazetteer: Fat cats cry over spilt milk

Published on 19/07/2009 20:58

SHED a tear for Britain's fat cats, who are looking just a little thinner this year.

New research reveals that bonus payments to company bosses fell "markedly" in 2008, although board members still received awards worth almost a third of their annual salary.

Senior managers partaking in more than 200 bonus schemes saw the sharpest cut in their bonuses, down from 20 per cent of their salary to 13 per cent, while professional and technical staff suffered a drop from 8 per cent to a mere 5.5 per cent of their pay packet.

Bonuses paid to junior and middle managers, meanwhile, fell from 10 per cent to 7.8 per cent of salary, while for board members, bonuses fell from 40 per cent to 30 per cent, according to Incomes Data Services.

Steve Tatton of IDS says: "Although bonuses have come under fire, with criticism linking incentive schemes to the use of high-risk, short-termist business strategies, employers continue to view performance-related pay as a valuable reward tool."

The report noted that bonuses were generally paid out on past performance, so much of last year's money would have been based on company and individual performances before the credit crunch began to impact on the wider economy.

Looks like the cream will be spread a little thinner in '09.

FACT OF THE DAY

86m

THE size of the bumper pay-off set to be handed to Porsche boss Wendelin Wiedeking, at least, according to weekend reports. Wiedeking's pay-off, to secure his early departure from the debt-ridden firm, would be the biggest of its kind ever given out to a country boss in Europe. The package would consist of his earnings for the rest of his contract, which ends in 2012, as well as a lump sum, a share package and pension rights. A spokesman for Porsche was reported to have dismissed rumours of Wiedeking's departure as "pure speculation".

KILLER QUOTE

THEY are a complete waste of time and I try to avoid them at all costs. I would much rather have a meeting and a cup of tea"

Entrepreneur and Lastminute.com co-founder Martha Lane Fox on business lunches

GOOD DAY

Northern Irish diners

GLASGOW-BASED online restaurant booking firm 5pm.co.uk is to expand into Northern Ireland after strong demand from bargain-hungry diners. Growth into the Irish Republic is expected to follow. 5pm is already available in some 1,000 British towns and cities.

BAD DAY

Caledonia

THE investment trust firm has been heavily criticised by shareholder lobby group Pirc for proposing to donate 75,000 to the Conservative Party. A spokesman for Pirc said company executives should only get involved in politics "as private individuals".