Fat cats keep the cream

Directors and managers continue to enjoy pay rises well ahead of inflation, a new report published today confirmed. Managers received average pay rises of 6.2 per cent last year, their highest annual increase since 1992, according to pay consultants Remuneration Economics (RE). And directors' rises averaged 7.2 per cent down from 9 per cent the year before, while both groups received record numbers of bonuses.

RE's 1997 National Management Survey shows that the North-South divide is clearly marked - with one exception. London's managers are the country's best-paid, but the most highly rewarded directors work in Scotland. The survey also confirms that the fattest cats are found in the utilities, as directors in the electricity, gas and other energy industries earn pounds 119,996 on average. Public sector directors were least well-paid, earning an average of pounds 58,131.