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Emerald Group Publishing Limited
Copyright © 2000, MCB UP Limited
Small but not necessarily beautiful
The Smaller Business Review, produced by the Institute of Management, suggests that small businesses are still struggling to pay competitive salaries compared to business overall within the UK. Executive pay in smaller companies (those with an annual turnover of less than £60 million) rose by 5.9 per cent in 1999. Although this is above the previous year's figure of 5.2 per cent, it still trailed the national average for executives of 6.9 per cent. Do not have too much sympathy, however, as the average for all employees was only 4.2 per cent over the same period. The number of managers receiving bonuses declined from 45 per cent to 41 per cent, and these bonuses averaged 9 per cent of anual salary. A total of 48 per cent of managers in these smaller businesses received their bonus based on company, rather than individual, performance. The typical manager in a small organisation now earns £31,564, is 43-years-old, has been with the company for 13 years, and receives 31 days annual holiday. The average director, however, earns £75,166, is 47-years-old, has also been with the company for 13 years, and receives 30 days annual holiday.