Over half of FTSE 350 directors face pay freeze, survey shows

14 September 2010

More than half of FTSE 350 business directors will not receive a pay rise in 2010, a new survey has revealed.

A study by Deloitte showed that the freeze will mean many have not received a rise in over two years.

An additional two-thirds of top executives did not receive a wage increase during the previous year either, the report stated.

Those professionals expected to receive a rise are likely to see an increase of three per cent – a figure much less than previous years, Deloitte revealed in the survey.

Stephen Cahill, a partner in Deloitte’s remuneration team, said: "Last year we saw a very large number of companies freezing executive salaries, but at the time it was difficult to predict whether this was a one-off.

"Now it appears that the years of executive salaries increasing at rates far in excess of inflation and the increase in average earnings are, at least for the moment, well and truly over.”

Further findings from the research showed that bonus payments were paid among executive directors working for firms within the FTSE 100.

The average bonus pay out was equivalent to 100 per cent of an executive’s salary.

By Jim Ottewill

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