LCP's 2002 Executive Benefit Survey focussing on Directors' Money Purchase Schemes, Remuneration Committees, Directors' Remuneration Report Regulations 2002.

Introduction 2005 2004 2002

Executive Benefit Survey 2002

Fat cats getting thinner.

During the latter part of 2002 we carried out a survey of pension benefits provided to executive directors of companies within the FTSE 350.

Our survey shows that pension benefits for directors are changing.

Companies are increasingly offering money purchase pensions to their directors. The average company contribution to money purchase schemes was 20% of salary per annum. This compares to an estimated cost to the company of 43% of salary for the final salary benefits disclosed in our survey.
In December 2002, the Inland Revenue announced proposals that would have far-reaching implications for directors’ pensions. Remuneration Committees should be aware of the imminent need to review their pension provision for current and potential directors.
Shareholder scrutiny of directors’ pension provision is set to increase following the Directors’ Remuneration Report Regulations 2002, particularly in respect of early retirement and severance packages.

Download the PDF version of the 2002 Executive benefits survey

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