Executives want compensation for pension law changes

From April 2006 there will be a �1.5m lifetime limit on the amount of money that can be saved into a pension.

Many senior executives will be affected by the limit as they receive large payments into their pension pot.

In response firms may increase share options and pay, the survey conducted by recruitment group InterExec found.

Package boost

Almost a quarter of firms have already changed the way they pay their senior executives to reflect the pension cap.

According to InterExec, senior executives are the ones calling for the changes.

"Our findings would indicate that senior executives are demanding remuneration packages that provide alternative post retirement income," Kit Scott-Brown, chief executive of InterExec said.

"Most are looking to more generous share option packages to compensate for the pensions cap, citing the two fold advantage of providing alternative remuneration and being able to further lock in senior executives."