Rewarding failure - High Pay Commision report

The High Pay Commision has published a report entitled "What are we paying for. Exploring executive pay and performance." The key findings are:
        In 2002, for on-target performance, FTSE 100 lead executives received a bonus worth 48% of salary. In 2010, for the same level of performance, a FTSE 100 lead executive’s bonus was worth 90% of salary
· The increase in bonuses has not come at the expense of absolute rises in salary with salaries increasing 63.9% over the last 10 years.
· In 2002, the median maximum grant of shares that a FTSE 100 lead executive could be awarded was 100% of salary. In 2010, this has risen to 200% of salary.
· The average value of Long Term Incentive Plan (LTIP) awards paid out to lead executives across the FTSE 350 has gone up over 700% since 2000.

In short the capatains of industry are prosepring for no good reason.
Read full report here http://highpaycommission.co.uk/