Today salary research group Income Data Services has released details that chief executives of FTSE-100 companies have seen their salaries grow by 7.9 per cent in the last year, and if you look at the FTSE-250, this increases to 8.5 per cent.
That is surprising given the current economic conditions, but much like terrible football managers who always find themselves reemployed no matter how poor their previous performance, executive pay rarely appears to fall in line with common sense.
Perhaps more surprising is the revelation average staff earnings are also expected to rise by 3.4 per cent. I do find this peculiar, given the mass of stories of pay freezes and redundancies (63 per cent of firms, according to a story earlier this year).
The main driver of salary growth in the procurement profession in the past few years has been demand for talented candidates. I can’t imagine this has dissipated during the recession, although the talent pool may now be slightly deeper. It will be interesting to see how this affects purchasing pay next year.