Boardroom pay under scrutiny

SHAREHOLDER pressure will keep a lid on directors' salaries at FTSE-350 companies this year, according to a report out today from accountancy firm PWC.

Almost one quarter of firms plan to freeze directors' pay. Salary increases, where given, are expected to be around 3 per cent, marginally higher than last year's 2.8 per cent, but significantly below the 6 per cent increases seen in 2007 and 2008.

But pressure to ensure that executives remain motivated in the face of pay freezes perhaps explains why 30 per cent of companies are planning to increase the maximum available bonus payouts.