Money
The basic fees for NEDs increased by an average of just 2.8% – representing the lowest recorded rise in basic NED fees for more than a decadeReuters

FTSE 100 non-executive directors responsible for setting executive pay in their companies have seen their fees jump by more than 8% in the last year.

According to research from Incomes Data Services (IDS), which is part of Thomson Reuters, additional fees for NEDs serving on board remuneration committees rose by an average of 8.8% last year while the fees commanded by remuneration committee chairman rose by 8.3%.

But the basic fees for NEDs increased by an average of just 2.8% – representing the lowest recorded rise in basic NED fees for more than a decade

"While fees for FTSE 100 NEDs are continuing to increase, the overall pace of growth seems to have slowed," says Nasreen Rahman, Assistant Editor at IDS.

"However, NED remuneration is built up by taking on extra responsibilities, so many NEDs are still seeing fairly sharp increases in their fees."

IDS explained this increase in pay for remuneration committee members has coincided with an increased burden on the role.

The figures come as the issue of executive pay has become more high profile following 2012's Shareholder Spring when several chief executives were forced to resign after investor revolts over their remuneration packages.

New legislation now gives shareholders a binding vote on remuneration policy.

The research also revealed that the basic fee for FTSE 100 NEDs is now £65,816 and that the average additional fee for remuneration committee members is now £12,622, while the additional fees commanded by remuneration committee chairmen is £21,258.

In addition, the study found that the average increase in additional fees for senior independent directors was 7.6%, while chairmen saw an average increase in their fees of 4.9%.