MANAGEMENT income is lagging well behind inflation, with public sector and top tier bosses hardest hit by strict budgets.
Research from Income Data Services’ (IDS) executive compensation review today reveals the average pay increase for the three months to the end of April was two per cent, while the Retail Price Index (RPI) rose 3.3 per cent.
However average public sector management pay awards were up by only 0.9 per cent.
Managers and professional staff in the manufacturing sector saw the biggest increase in pay, with average pay awards of 2.3 per cent.
The research also found that the higher the management level, the lower the pay rise – 33.3 per cent of board level reviews were pay freezes. The average pay rise for a private sector board member was only 1.7 per cent during this period, compared to 2.1 per cent for more junior staff.
Despite the pay lag, bonuses paid during the period were around 30.3 per cent of a manager’s salary, compared to 21.4 per cent at the same time last year.