Up to 80% of FTSE 250 companies have implemented a salary freeze for directors in 2009, compared with 60% of those in the FTSE 100. Along with a salary freeze, the median of which for the highest paid directors in the FTSE 250 is £444,000, bonuses have also been knocked. The report on directors' remuneration for 2009, by executive remuneration consultants Hewitt New Bridge Street, highlights a bonus payout of 60% of salary in 2008/09 compared with 85% of salary in 2007/08. Research shows that those companies with a later year end had bonus drops of 40% of salary.

'Our survey shows that FTSE 250 companies have shown restraint on executive pay by freezing directors' salaries and paying far lower bonuses than in previous years. A number of companies have also reduced long-term incentive award levels. In some respects, they appear to be showing more restraint than FTSE 100 companies,' said Rob Burdett, principal consultant at Hewitt New Bridge Street. He said reasons for this could be due to the smaller nature of FTSE 250 companies, which could make them more mindful of the bottom line, and secondly the influence of shareholders.