MORE than half of FTSE 350 companies will not increase the salaries of executive directors in 2010 although bonuses are bouncing back, according to a report by Deloitte today.
The figures from the professional services firm reveal a salary freeze for many executives, after over two thirds were awarded no pay increase in 2009.
Those who do receive a rise are likely to only be given three per cent – much lower than the level of increase seen in previous years, the annual executive pay report found.
However, bonus payments for FTSE 100 executive bounced back this year.
The average payment was around 100 per cent of salary and in the top 30 companies was 140 per cent of salary – almost 20 per cent higher than last year.
Many executives will have to wait to pocket their full payments as in two thirds of FTSE 100 and half of FTSE 250 companies there is a requirement for up to a half to be deferred, often to be paid in shares.
Stephen Cahill, partner in the remuneration team at Deloitte, said: “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.”