Over half of firms freezing executive director pay

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The Independent Online

More than half of top companies will not increase the pay of executive directors in 2010, the second year many executives have had their wages frozen, according to a new report today.









A study of 350 firms showed that any pay increases this year are likely to be around 3%, much lower than in previous years, although bonuses were rising.



Business advisory firm Deloitte said bonus payouts were higher this year in Ftse 100 companies, although lower in other businesses.



Stephen Cahill of Deloitte 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.



"Companies are now recognising that increases for executives must be considered fair and reasonable in the context of current business circumstances and the pay and conditions for employees more generally."

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