Despite
reports in the national press about the ‘scandalously’ high levels of
remuneration paid to the UK’s top directors, pay rises for directors are
actually at their lowest level for 10 years, according to the 2002 National
management Salary Survey.
The
report, by the Chartered Management Institute and Remuneration Economics, found
that the average increase in the year to January 2002 was 5.9 per cent. The
increase for the previous year was 12.9 per cent.
The
survey shows that the main constraint on directors’ pay growth has been a drop
in the number of awarded bonuses and the value of the bonuses given.
In
all, 52 per cent of directors received a bonus last year, down from 66 per cent
the previous year and 70 per cent in 1999.
Among
those who received a bonus, its value dipped from 27 per cent to 23 per cent.
Overall,
managers have fared better, either maintaining their position or doing better
with earnings increasing 6.2 per cent in the year to January 2002, up from 5.5
per cent the previous year.
The
survey also shows that average earnings (basic plus bonus) have broken the
£40,000 barrier for the first time.
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The
average director earns £120,000.
