DIRECTORS of small and medium-sized firms in the UK are no better off – and in some cases poorer – than they were five years ago.
The surprising financial position of directors of SMEs – and the difference compared with the much-hyped FTSE 100 sector – is revealed in a survey of more than 3,200 jobs.
The research, Directors’ Rewards, has been carried out by business information, software and services specialist Croner.
It shows that the average 2011 annual pay for directors of small companies with a turnover below £5m a year has fallen by £5,000 from the level of £87,500 five years ago.
In the past 12 months alone, their average pay has fallen by 15% – or over £14,000 – taking their total pay package to £82,500. In 2010 it was £96,568.
Directors of larger organisations with a turnover of between £50m and £500m score marginally better with an increase of 2% over the past 12 months in average annual salaries to £174,287.
Heads of medium-sized organisations with a turnover of between £5m and £50m fared best last year, although with a still modest 3% increase, taking their package to £128,699.
Vivienne Copeland, of Croner, said: “Despite recent reports that FTSE 100 bosses have seen a 49% increase in their pay, our research clearly reveals this is not the case for the majority of directors in British boardrooms.
“The average pay of all FTSE 350 directors more than doubled between 2000 and 2010. The financial position of people running small businesses is therefore a far cry from their much larger corporate counterparts.”