Directors performed better than the average 5 per cent increase enjoyed by managers with an average pay rise of 6.6 per cent. Managers in small firms now earn an average of pounds 28,800, which includes a bonus of pounds 1,100, while a director earns pounds 54,600 with a pounds 4,500 bonus.
The institute's survey, published today, discloses that the percentage of managers with company cars fell from 60 per cent to 51 per cent and holidays were cut from six to five weeks.
The number of smaller firms providing free private health insurance for their senior staff fell for the third successive year.
Roger Young, director general of the IoM, said many firms were finding they must cut costs without cutting corners. "Perks have been trimmed to give organisations scope to reward excellent achievement through performance related pay."
A second survey, by the pay analysts Incomes Data Services, also published today, discloses that wage rises among workers are "significantly" lower in the public sector because of the Government's pay policy. Most public sector settlements this year have been between 2 per cent and 2.9 per cent.
The gap between the pay of men and women in private and public sectors has closed by just 7 per cent in the past 20 years, a report by the Labour Research Department has shown. Women's hourly earnings are 79 per cent of men's pay and it will take another 55 years before full equality is reached.
The CBI is also to publish a pay report today showing pay awards in manufacturing and service sector firms have shown no real growth during the spring. Deals in manufacturing averaged 3.3 per cent in the three months to the end of May - the same as in the three months ending in April. Service sector awards averaged 3.4 per cent against 3.3 per cent previously.
The main constraints on pay were the inability of firms to raise prices and low profits.Reuse content