IoD: Private sector bosses seeing pay frozen

A LARGE number of UK bosses have had their pay frozen or are on a ‘pay holiday’, while a significant number have reduced their bonuses, according to new research.

Data from an IoD Policy Voice survey of more than 1,300 UK bosses, has revealed that almost 50% of those surveyed have had their pay frozen or are on a ‘pay holiday’.

Those who have reduced their bonuses numbered 40%.

The IoD said the figures were in contrast to the situation in the public sector, where the latest data from the ONS showed that average earnings, including bonuses, increased by 4% in June, compared with the previous year.

Miles Templeman, director general of the IoD, said: “There is a growing divide between the private and public sectors, with the public sector so far immune from the effects of the recession. 

“Most IoD members run small and medium sized businesses on moderate pay packages, while almost half have no occupational or employer-sponsored pension at all. 

“With government borrowing reaching sky-high levels, there has to be a sense of proportion and reality amongst government employees. 

“This recession has had a big effect on businesses, the public sector cannot remain immune, and the need to bring down the deficit means that a pay freeze across government should come into effect.”