New research shows remuneration for chief executives in banking and insurance is rising faster than improvements in their companies' financial performances.
Published by UK financial market information supplier Key Note, the research revealed chief executives at the larger financial companies earn, on average, over £700,000 per year. The top earner, from a large bank, received nearly £1.75m.
This comes against the backdrop of weaker stock market positions for these companies, especially the major insurers. According to the report, CGNU, Prudential, Royal & SunAlliance and Legal & General all suffered share price falls between January and July this year and they will "struggle to maintain dividend payments in the next few years".
Key Note also pointed to difficulties within the insurance market: "Almost 40% of consumers do not have home contents insurance and a quarter of medium to high earners are not taking out building insurance, compared to 80% in 1999. Rising premiums from thefts and environmental damage, particularly flooding, appear largely to blame."
