‘Gold-plated pensions’ for directors
It found that executives in FTSE 100 firms received average annual pensions worth around £175,000.
The annual median pension from a private sector final salary pension averages £5,860 for the rest of the workforce, according to the research, conducted by pay analysts Incomes Data Services.
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Hide AdOver 97 per cent of executive directors in FTSE 350 companies have company-sponsored pension arrangements, compared with a third of private sector employees. Deborah Hargreaves, chairman of the High Pay Commission, said: “Companies are increasingly paying their executives generous cash supplements instead of pensions to get round restrictions on tax relief introduced in the last few years.
“Directors are receiving gold-plated pensions while retirement provision for the workforce has been slashed.”