Scandal over pensions of top directors

Fri Sep 11 2009 09:25:54

The retirement pensions of top company directors have increased by more than 23 per cent since last year to almost £250,000 a year and are now "nothing short of scandalous", according to a new report.

The TUC said leading bosses amassed pension pots worth an average of £3.4 million, providing an annual pension of £247,785 a year each.

The union organisation said the highest paid directors in each company had pensions worth £333,664 a year, while a small number of bosses would receive more than £1 million a year.

The study found the average pension of a director is now 30 times that of the average workplace pension of £8,320, with almost two thirds of top bosses still on final salary pension schemes even though workers were facing less generous schemes.

The TUC said workers were being forced to work for longer due to rising retirement ages, while most directors were still able to retire at 60.

General secretary Brendan Barber said: "Top bosses justify their pensions, pay and bonuses on the grounds that they are rewards for success. But the stock market nose-dived in 2008 and yet the directors of these same companies have still managed to increase their pensions by over 20 per cent.

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