Executive pay in the hospitality and leisure sector has rocketed over the past five years, outstripping average company profit growth and ordinary employees' pay, according to a new report.

The highest paid executive listed in the survey was David Michels, former chief executive of the Hilton Group. His total income soared by 201% from £826,000 in 2002 to £2.5m in 2005. Company profits grew by 152% to £394m over the same period.

Millennium & Copthorne's chief executive Tony Potter saw his total remuneration grow by 15% to £713,000 over the same period, even though group profits fell by 8% to £55m.

The survey found that the average salary for a hospitality and leisure employee grew by 35% between 2000 and 2005, from £13,410 to £18,062. The average chief executive's salary rose by 33% from £375,919 to £501,613 over the same period. However, the average total earnings for chief executives has grown by 42% to £1.07m, up from £752,754 in 2002.

As a result, eight (or 40%) out of 20 chief executives surveyed took home more than £1m in 2005 compared with just three (or 20%) in 2002.

Other chief executives earning more than £1m last year included Andrew Cosslett of InterContinental Hotels & Resorts (£1.25m), Enterprise Inns' Ted Tuppen (£1.1m), Mike Bailey at Compass (£1.1m), Whitbread's Alan Parker (£1.07m) and Rank's Ian Burke (£1.04m).

* Pay for Performance 2006 is on sale for £235. Visit www.janetsalmon.com for further details.

Chief executives' total earnings and company profits 2002-05

Company	Profit £m 2005	Profit £m 2002	Chief exec total earnings 2005	Chief exec total earnings 2002
TRG	24.7	16.8	408,000	305,000
Hilton	394	156.1	2,493,000	826,000
Wetherspoon's	46.1	53.6	407,000	427,000
Whitbread	263.5	7.0*	1,069208	627,276
M&C	55	60.1	713,000	622,000
De Vere	58.9	38.5	590,000	347,000
Compass	172	382	1,098,000	2,027,000

 

 

 

 

 

 

 

* £206.4m in discontinued operations and restructuring

By Angela Frewin

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