The report finds 80% of FTSE 250 companies had implemented a pay freeze this year, compared with 60% of FTSE 100 companies.
Bonuses for executives of 250 firms were also down this year - bonuses were around 60% of salary, compared with the 85% of salary bonuses they received in 2007/8.
According to Rob Burdett, principal consultant at Hewitt New Bridge Street, the research shows FTSE 250 firms are taking more decisive action over pay and bonuses than their FTSE 100 counterparts: "FTSE 250 companies are showing far more restraint than FTSE 100 firms," he said.
He added: "Although FTSE 250 firms are smaller and may have a much stronger need to contain costs, another reason may be the influence of shareholders. FTSE 250 companies typically have a smaller group of larger shareholders who may exert greater influence over remuneration policy. Conversely, the FTSE 100 has a larger group of more varied shareholders."
The report finds variable pay (annual bonuses and long-term incentives) now accounts for 50% of a FTSE 250 director's package. This compares with 37% in 2003. About 55% of variable pay relates to long-term performance (compared with 45% in 2003).