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Salary increases for FTSE 250 companies remain flat, says Deloitte

Almost half of FTSE 100 chief executives and over a third of directors received no pay increase last year, according to the 2012 directors remuneration report in FTSE 250 companies, published today by business advisory firm Deloitte.

The median salary increase for 2012 remained flat at 3%, the same as last year. Deloitte's report found that around 30% of companies gave no increase, in line with 2011. A further 46% of companies gave increases of less than 5%, compared with 41% last year.

Mitul Shah, partner in the remuneration team at Deloitte said: "Directors' remuneration is generally debated in response to the potentially high levels of remuneration in the UK's largest companies. We should remember that this only applies to a relatively small number of companies.

"The research shows that remuneration in the mid 250 companies is lower. Structures tend to be less complex and practices are more diverse than in larger companies".

Bonus payouts were also lower than last year, according to the report. It found that the median payout was 75% of the maximum that may be paid, compared with 86% last year.

Shah commented: "While bonus payouts are lower this year, more work could be done to ensure that any payout from annual plans is better linked with performance.

"Deloitte believed that any payout in excess of half the maximum should be the result of better than 'good' performance."

He added: "What is clear from the report is that the FTSE 250 is not a homogenous group but is made up of very different groups of companies and it is particularly important to ensure that remuneration structures are suited to the particular business requirements and industry specifics."

The report is based on information from the latest report and accounts of companies in the FTSE 250 as at 1 July 1012.