This is also an area where shareholder oversight has been extremely weak. Very few investors have bothered to take a firm line, meaning that there is no significant pressure on companies to reform. Shareholders may conclude that, yeah, it's unfair but it's only a smallish bit of the overall package. The result is that companies do what they can get away with. I've come to the conclusion that - if Government thinks differential provisions is unacceptable - some sort of legislative intervention is therefore required.
Anyway, here are some headline stats etc from the HPC report:
A FTSE 100 director with a defined benefit pension could be expected to receive a
median annual pension worth £174,963 on retirement.
The annual median pension paid from a private sector defined benefit pension scheme was £5,860 for the rest of the work force.
FTSE100 median accrual rate for directors - 1/30ths (average 41)
Mid250 median accrual rate for directors - 1/45ths (average 47.8)
Typical accrual rate for staff - 1/60ths or 1/80ths
FTSE100 median company contribution rate to director DC scheme - 17% (average 19.4%)
FTSE100 median company contribution to director DC scheme - £88,000
Mid250 median company contribution rate to director DC scheme - 15% (average 16.4%)
Mid250 median company contribution to director DC scheme - £43,000
Average employer contribution to staff DC schemes - 6.1%