Executive compensation is set to rise over 16% during 2007, according to a study conducted by accounting firm KPMG. This rise marks an acceleration from last year's 9% rise and causes greater concern for many shareholders and watchgroups that have been protesting excess compensation and perks.
"Indeed,
an interesting phenomenon in the data this year is that among FTSE-100
companies operating share option plans, the grant levels are greater
than the normal grant limits, indicating that companies may be using
the exceptional circumstances' clauses typical in many plans, and
perhaps also the influence of some uncapped plans," said Mary Carter, a partner at KPMG. "This has led to the median actual grant being higher than the
median maximum grant opportunity for both FTSE-100 chief executives and
FTSE-100 finance directors."