CMI : Managers Receive Bonuses After Failing to Hit Targets

LONDON, May 9, 2016 /PRNewswire/ --

• More than 1 in 5 managers (23%) who fell short of performance expectations in the last year still received bonus pay-outs. 
• Pay and performance issues in the UK extend well beyond CEO level. 
• The number of managers receiving bonuses has increased over the last year from 54% to 57% with average bonus payments at 12% of their basic pay. 

Companies are giving bonuses to more than a fifth of managers that failed to hit performance targets, according to the latest annual report on pay and performance issues in the UK.

The National Management Salary Survey commissioned by the Chartered Management Institute (CMI), has been tracking executive pay since 1973,  and reveals that more than one in five managers (23%) who fell short of performance expectations in the last year still received bonus pay-outs averaging 12% of their basic pay.

The research calls into question colleagues who sit in the office, not performing at the same levels, yet receive the same average bonus of £4,270.

The data shows that so-called 'rewards for failure' are even more common for more senior leaders. Among senior managers who fell short of performance expectations, as many as 43% took home bonuses.

The survey which analyse remuneration data for over 105,000 managers and professionals from 425 organisations, also revealed that CEOs and directors bonuses count for 38% of their pay while across the wider management population, they represent just 17% of pay packages.

Interview opportunity with Ann Francke – Chief Executive of CMI and/or Petra Wilson – Director of Strategy at CMI

Darren Ruback, +44-(0)20-78613031, DRuback@goodbroadcast.co.uk