Directors' pay soars

Chairmen in FTSE100 companies enjoyed a 9.2% increase in fees in 2007, according to research from consultancy MM&K¹. Over the same period the median annual fess paid to non-executive directors rose by 6.9%.

The median annual fees for a chairman in a FTSE100 company stood at £273,000, while non-executive directors received £64,161. Fees fell considerably for postholders in FTSE250 companies. Chairmen in these firms received a median £110,000 in fees in 2007, while non-executive directors took home a median £40,000.

Daily fees also vary considerably by the size of company. In the smallest quoted companies, the median daily rate for a chairman is £1,292, rising to £2,869 in the largest companies. For non-executive directors, fees can increase from £1,292 per day in the smallest companies to £1,625 in the largest organisations. Rates in unquoted companies are typically lower.

Despite the level of fees paid to executive directors, 58% of survey respondents feel that the rewards are offer are either "too low" or "far too low".

1. Life in the Boardroom, The 2008 Independent Chairman and non-executive director survey, MM&K, tel: 020 7283 7200, price £200.