Extract from IDS Executive Compensation Review 321

Directors' pay in AIM and SmallCap firms

It is perhaps unsurprising that with FTSE 100 lead executives’ earnings in the UK averaging over £3 million, little attention is paid to the remuneration of directors of smaller firm. For this reason, for the last two years we have conducted our own boardroom pay survey of Alternative Investment Market (AIM) and SmallCap companies.

All data for the Directors’ pay in AIM and SmallCap companies 2007 report is taken from latest available annual reports and accounts. A fuller picture of pay movements in AIM and SmallCap companies for three board positions – lead executive, finance and other director are given in margin tables. As well as pay movement figures, the survey also provides detailed breakdowns of directors’ pay in AIM and SmallCap companies by a range of variables, including financial turnover, market capitalisation and number of employees.

Other tables provide detail on incentive arrangements, with a separate section providing information on specific job title, including commercial directors, development directors, operations directors and property directors. A further segment of the report gives a detailed record section showing comprehensive pay and incentive practice by named company while a final table provides an overview of incentive practice in named SmallCap and AIM organisation.