Payments to directors at the top 100 contracting firms have increased by £5.5 million in their most recent financial year, while many groups have seen turnover and profits fallen.
Research undertaken by CNinsight as part of Construction News’ CNinsight 100 annual review of the construction sector shows total director remuneration was £191.5m in the most recent financial year, compared with £186m a year before.
In all, 32 firms paid their directors more than the top 100 average of £1.9m. These 32 firms increased director remuneration by seven and a half per cent, to £129m, in total, compared with £120m in 2009.
The 32 firms also reported above-average profits growth of five per cent, compared with the five per cent total fall in amalgamated pre tax profits of all firms in the CNinsight 100. However, performance did not improve at all 32 firms.
Firms including Bowmer & Kirkland, RGCM, Midas, Carey and GB Building also saw directors’ pay increase while turnover and profit fell.
Other number crunching details showed that ten of the 32 companies paying above the average rate to directors gave their highest paid director more than £1m.
There were several large increases in the annual salaries paid to companies’ highest paid directors. Morrison Utility Services saw a significant increase in the remuneration of its highest paid director, up 169 per cent to £783,000.
But not all directors took home increased salary packages. The highest paid director at Seddon, Severfield Rowen, Vinci Plc, Sir Robert McAlpine, Carillion and Balfour Beatty were all paid less than the highest paid director the year previously.
And while the average paid to directors across each firm in the top 100 was £1.9m and total payments increased 3 per cent, average salaries for those working for the top construction companies barely changed, rising just 0.4 per cent to £36,476.
