Deloitte reports median salary increases and bonus payments for FTSE 100 executive directors were down in 2011-12 compared to the previous year, indicating some big companies are beginning to curb executive pay. However, with Vince Cable’s reforms imminent, more needs to be done to improve the link with performance.

Leon Deakin, an Associate at leading law firm Thomas Eggar, comments:

“Deloitte's findings surely have to be seen as a step, albeit a small one, in the right direction towards ensuring that pay is linked to performance.

“However, I suspect it will not be enough to placate Vince Cable or, more importantly, the continuing tidal wave of anger directed at the perceived 'city fat cats' from those working in the public sector. Or people working at one of the many private companies where any sort of pay rise is a once in a blue moon occurrence, especially when the figures also show the lower increase is still well above average and the median bonus is 120% of salary. Nice work if you can get it!

“Indeed, although larger companies are clearly taking steps designed to reward long term and sustained success (for example, claw back and longer measurement periods) I would be very surprised if Vince Cable felt he had seen enough to change his mind and give 'self-regulation' another go. Accordingly, I think we can fully expect to still see him ploughing ahead with his plans to give shareholders greater powers on pay and creating more transparency. In this respect the changes made so far and resulting reductions are definitely too little and almost certainly too late.”