The median total pay for chief executives across all English NHS trusts during the last year was running at £157,500, while for those in post over the last two years the median salary rise was zero.
IDS says this marks a reversal in a long-term trend of high wage growth amongst NHS board members, a sign that the public sector cuts have started to affect the pay of senior-level executives for the first time.
With inflation running at 3.5% (CPI: March 2012) this equates to a pay cut in real terms.
Steve Tatton, editor of the IDS Executive Compensation Review, comments: "It appears that those at the top of the NHS have responded to calls for pay restraint, with the previously steady growth of pay at the top grinding to a halt."
"This reflects the ongoing reorganisation and consolidation within the NHS, along with continued pressure from central government to reduce costs, increase efficiency and curb senior executive pay."
According to IDS, board-level turnover in NHS trusts ran high at 24% last year, up from just 17% two years ago.
Steve Tatton continues: "The turnover rate of senior level staff in the NHS remains high, as the impact of service reorganisations and cost cutting feeds through to management structures. Those remaining in post are earning less in real terms than those who occupied those posts the previous year. It remains to be seen whether this is a temporary blip or the start of a longer- term trend."
"But as turnover rates of senior level NHS staff continue to rise, the question must be asked as to what impact instability at the helm will have on performance."
According to IDS, pay for NHS chief executives had increased by 115% between 1997 and 2009, but clampdown on public sector pay reversed this trend.
According to IDS, the pay divide between chief executives of foundation and non-foundation trusts has closed, with both median total earnings the same over the last year, at £157,500.
IDS points out that foundation trusts have greater managerial and financial autonomy, giving them more scope to set senior director remuneration, whereas other trusts such as Primary Care and Ambulance trusts are governed by prescribed guidelines determined by the Department of Health.
