Executive pay still faces the big freeze

More than half of the UK's biggest companies will not increase the pay of executive directors in 2010, the second year many have had their wages frozen, a report today reveals.

A study of 350 firms suggests that any pay increases this year are likely to be around 3 per cent, much lower than in previous years, although bonuses are rising.

Accountancy and business advisory firm Deloitte said bonus payouts were higher this year in FTSE 100 companies, although lower in other major businesses.

Stephen Cahill of Deloitte said: "Last year we saw a very large number of companies freezing executive salaries, but at the time it was difficult to predict whether this was a one-off.

"Now 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."

Research last month found that fewer firms were freezing the pay of their workers, although average rises remained at 2 per cent in recent months.

More employers were giving rises of 3 per cent or more in a sign that higher-end deals are on the increase, according to IDSPay.co.uk. Manufacturing workers faced more pay freezes than those in service firms.