Chief executives of AIM companies increased their remuneration last year by nearly three times the current rate of inflation.

Chief executives of AIM companies increased their remuneration last year by nearly three times the current rate of inflation.

That is one of the findings of Growth Company Investor’s sixth annual survey of the pay of directors of AIM-quoted companies, sponsored by Halliwell Consulting. The survey, which is published today, shows that the number of AIM chief executives taking home over £1 million more than doubled to 24, but it also demonstrates that top payments can be a poor indication of the future profitability or share price performance of a company.

According to AIM companies’ latest annual reports, the average pay of AIM chief executives rose 14.6 per cent over the past year to £268,036 – twice the level in 2003 – while UK inflation has only recently reached around five per cent.

Finance directors enjoyed an average pay increase of 19.6 per cent to £159,472, 89 per cent above their 2003 level, and non-executive directors’ remuneration rose by the same percentage last year to an average £99,277, while the average pay of entire AIM company boards rose by ‘only’ 9.9 per cent to £624,181.

The number of chief executives receiving £500,000 or more grew from 51 to 86. Meanwhile, 173 companies paid more than £1 million each to their combined boards, up from 120 the previous year and 59 in 2006.

Among the stars, Philip Richards, ex-chief executive of former high-flying resource-oriented investment group RAB Capital, received £7.8 million, comprising a £102,000 basic salary and a £7.7 million performance bonus (of which £3.5 million went to charity).

To purchase a copy of the full report contact Calvin Green on 0207 250 7056 or calvin.green@vitessemedia.co.uk