Almost half of executive directors have had their pay frozen in 2009, while 6% have taken a pay cut, according to the Institute of Directors (IoD).
It added that the picture varied from company to company, with 50% of directors of small companies experiencing a pay freeze compared to 42% of directors of medium-sized companies and 36% of those at large companies. Nine per cent of small company directors have taken a pay cut this year, while 7% of those at medium-sized companies and 4% of those at large ones have done so.
IoD director general Miles Templeman said: “We can see that the recession is affecting people at all levels of seniority in the private sector. From the shop floor to the boardroom, no-one is immune from the pain.”
The IoD’s figures, based on an analysis of 3,468 jobs at 1,200 organisations, indicated that 46% of directors of medium-sized companies are working more than 55 hours a week compared to 30% last year, and of that, 18% are putting in more than 60 hours a week. Last year, only 7% did so.
Some 40% of directors of small companies will work more than 55 hours a week this year, while 50% of directors of large firms are expected to do so, said the IoD. Of the latter, 25% will work more than 60 hours a week in 2009 compared to 11% in 2008.
For the 50% of directors surveyed who got a pay rise this year, the average was 3.2%. And, said the IoD, the basic pay for a small company managing director (MD) is £70,000, while that of an MD of a financial services company is £120,000 compared to £75,235 for an MD in the voluntary sector. Public sector MDs earn an average salary of £110,000.
The IoD defines small, medium and large companies as ones that have a turnover of up to £5m, £5m to £50m, and £50m to £500m respectively.
Meanwhile, research from reward consultancy Mercer indicates that 76% of employers will not impose a pay freeze in 2010. Respondents to its quarterly salary indicator research forecast pay rises of 2.8% to 2.57% next year.