Irish company executives and managers continue to enjoy pay rises above the rate of inflation, according to research by business consultants Inbucon, but the rate of salary increases has dropped by more than 3 per cent. Annual bonuses have also fallen and other job perks cut back as companies tightened their belts in 2002.
Executive and managerial salaries rose by an average 5.35 per cent during the period from July 2001 to July 2002, down from 8.49 per cent the previous year, according to the annual Inbucon report on salaries and fringe benefits in Ireland.
The survey examined the pay and benefits of 3,293 executives in top, middle and junior management jobs in 179 companies.
The rate of salary increases is down on last year because many private firms introduced a pay freeze in 2002 in response to the downturn in the economy. Firms surveyed indicated that pay freezes would remain in operation until mid-2003.
The rate of increases in basic salaries for 2003 is expected to drop further to just over 4 per cent.
Senior management fared the best with an average pay rise of 5.81 per cent, followed by heads of function with an increase of 5.69 per cent. Lower and middle managers' salaries increased by 4.87 per cent. The average value of bonuses decreased from €11,159 in 2001's report to €10,118 this year.
"A lot of bonuses are based on performance and it looks like companies weren't performing as well as they had anticipated," said Mr Seán MacHale of Inbucon Ireland.
Managing directors received the highest bonuses, at an average of almost €35,000. Full-time directors received an average bonus of €27,602.
The overall incidence of profit-sharing schemes fell from 44.9 per cent in 2001 to 33.72 per cent in 2002. But the popularity of share-option schemes increased.
This year was not good for free lunches. The incidence of subsidised lunches for executives fell from 71 per cent in 2001 to 55 per cent in 2002. The provision of life assurance and medical insurance also decreased.
Four out of every five firms surveyed have established pension schemes, with 15 per cent paying higher contributions on behalf of some or all of their executives. This has fallen from 30 per cent two years ago.
Six out of every 10 managing directors have a company car, with BMWs the most popular choice. One-fifth of managing directors also get more than 30 days' holidays each year, but few exercise this right, according to the report.
The survey found that, as in previous years, the size of the company matters.
For example, a managing director in a company with a turnover of less than €3 million earns an average basic salary of €89,905 and an average total remuneration package of €98,217.
His or her counterpart in a company with a turnover of €100-€250 million can expect an average basic salary of €174,902 and an average total remuneration of €197,330.
