Director pay up despite slump

Directors of British companies received above-inflation pay rises last year despite the economic slowdown, research by Deloitte has shown.

The average increase for a FTSE company director was 6.2%, down from 7% the previous year, according to the accountancy firm's research.

One in four bosses also saw their bonus payment increase despite calls from the government for wage restraint, with the average sum between 70-80% of annual salary.

But Deloitte said many companies would have to rethink the level of executive pay in a tougher economic climate when shareholders would expect a much closer link between pay and performance.