Rewarding the Board

Guiding retail businesses through the harsh environment that is the UK High Street is no enviable task for Chief Executives and Finance Directors in today’s turbulent economy.

In a recent study, BDO has conducted research looking into the make-up of pay for Chief Executives and Finance Directors in quoted companies in the Retail Sector. The report looks at three key components of remuneration: base pay, bonuses and long-term incentives.

• CEOs in the retail sector typically earn higher salaries than other sectors.
• The average tenure for a CEO of a retail business has increased by 30 per cent in the past five years.
• In 2007 one third of retailers did not pay their CEO a bonus.
• The base pay for FDs is generally around 70 per cent of the CEO.
• Unlike other sectors, retailers are not asking executives to defer part of their bonus into shares.
• The challenge is to set fixed pay at the appropriate level and design performance-linked pay to generate growth.

For a copy of the full "Rewarding the Board" report, please click here

For more information please contact  Don Williams , National Head of the retail sector, or contact your local BDO advisor .