New Bridge Street Consultants found that the most popular vehicles were 'restricted share schemes' and equity 'partnership schemes', in which a bonus is paid according to performance measured against a pre-set target.
'Until relatively recently long- term incentive plans were predominantly cash-based,' said Carol Arrowsmith, NBSC managing director. 'But dissatisfaction with executive share option schemes has led to an upsurge in alternative share-based plans.'
A survey by Gallup shows waning enthusiasm among institutional investors for increasing holdings of British shares. Barely a third are bullish about the short-term outlook for the London stock market.
The survey of fund managers was published amid fresh reports that the Treasury is considering imposing VAT on banking and financial services.