• Sam Allardyce has a large performance-related component in his pay packet.
• He was offered a £2.5 million salary comparable with the remuneration he received at Sunderland to attract him away from the club.
• His base salary is lower than that of his predecessor, but it is heavily incentivised.

English FA announced the appointment of Sam Allardyce as the new England manager. Unlike his predecessor Roy Hodgson, Allardyce has a large performance-related component in his pay packet, meaning that the more successful England are, the more he will earn. 

“Businesses can learn a lot from the appointment of Sam Allardyce as the new England manager, particularly how to attract the top talent and incentivise great performances. Firstly, benchmarking salaries is vital. Following Roy Hodgson’s departure, there was outcry about the fact that he had been the highest paid manager at Euro 2016, particularly given England’s humiliating defeat to Iceland. However, the English FA argued that it’s vital to offer a salary that can attract top quality managers. Sam Allardyce was offered a £2.5 million salary comparable with the remuneration he received at Sunderland to attract him away from the club. In every industry, it’s critical for companies to use benchmarking tools to ensure that they aren’t missing out on the best candidates by paying under the odds.

“Crucially, the FA has also recognised the importance of using a performance-related element in pay. Sam Allardyce’s base salary is lower than that of his predecessor Hodgson, but it is heavily incentivised, meaning that if he meets the FA’s targets he can take home a higher total package. This is important because salaries are only a maintaining factor, while bonus schemes engage team members to go above and beyond to achieve their best. That way, like the FA, businesses can ensure that they not only secure the top talent, but continually motivate them to perform well and achieve success for their team.”