Most UK companies have introduced a pay freeze, according to the 2009 FTSE 100 Directors’ Remuneration report by executive remuneration specialist Hewitt New Bridge Street.

The report shows that around 60% of companies have responded to the downturn by freezing pay in the past year, with the median salary of FTSE 100 highest paid directors being £800,000.  

Actual bonuses earned in 2008/09 fell to around 90% of salary (or around 65% of the maximum potential), compared with last year’s figure of around 110% of salary or 80% of the maximum. 

David Tankel, principal consultant at Hewitt New Bridge Street, says: “The arrival of recession in the UK economy has left its mark on the remuneration packages of the directors of its leading companies.  

“With the economy experiencing dramatic change, companies have taken into account investors’ opinions and, of companies that disclosed details of their 2009 salary settlement, almost 60% have adopted a pay freeze.  Those that did not attracted significant flak from the investor community.”