Leadership and motivation to dip as bosses' bonuses decrease?

Date: 10/01/2011

Bosses could struggle to maintain their leadership and motivation after it was revealed that UK senior and middle managers have seen a fall in the amount they receive through bonuses and profit share.

According to the Global 50 Remuneration Planning Report carried out by Towers Watson, in 2010 senior managers were receiving an average of 35 per cent of base pay in bonuses, compared to 45 per cent in 2008.

And middle managers saw their bonuses decrease from 16 per cent two years ago to 13 per cent in 2010.


Anne Severeyns, head of operations, data services, EMEA at Towers Watson, said: "Variable pay such as this, vitally, offers employers the ability to manage cost and performance as well as rewarding and retaining key talent.

"In the current economic environment it has never been more important to have tools at hand to work out remuneration in the context of strict budgets and at the same time using it to develop those employees who are vital to business success."

This is not the only instance where managers have seen dips in their pay to reflect the current financial situation.

Last week it was suggested that council chief executives should see their pay cut, in what Graham White, HR director of Westminster Council, called "leading by example".

Posted by Jo Morgan

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