Executive salaries soar in hospitality
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 £m2005 | Profit £m 2002 | Chief exec total earnings 2005 | Chief exec total earnings 2002 |
| TRG](http://www.caterersearch.com/Companies/33945/Restaurant+Group+(The)+.htm) | 24.7 | 16.8 | 408,000 | 305,000 |
| [Hilton](http://www.caterersearch.com/Companies/33955/Hilton+International.htm) | 394 | 156.1 | 2,493,000 | 826,000 |
| Wetherspoon's | 46.1 | 53.6 | 407,000 | 427,000 |
| [Whitbread](http://www.caterersearch.com/Companies/33934/Whitbread+PLC.htm) | 263.5 | 7.0\* | 1,069208 | 627,276 |
| [M&C](http://www.caterersearch.com/Companies/33959/Millennium++Copthorne+Hotels.htm) | 55 | 60.1 | 713,000 | 622,000 |
| [De Vere](http://www.caterersearch.com/Companies/33939/De+Vere+Group.htm) | 58.9 | 38.5 | 590,000 | 347,000 |
| [Compass](http://www.caterersearch.com/Companies/33936/Compass+Group.htm) | 172 | 382 | 1,098,000 | 2,027,000 |
** £206.4m in discontinued operations and restructuring*
By Angela Frewin
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