More FTSE 250 firms have frozen salaries than their FTSE 100 counterparts, according to a new report from executive remuneration specialist Hewitt New Bridge Street.

The report shows that 80% of FTSE 250 firms imposed an executive salary freeze compared with 60% of FTSE companies.

Bonuses have also fallen with payments in 2008/09 60% of salary, compared to 85% of salary in 2007/08. For companies with a later year end, bonuses dropped to 40% of salary.

Rob Burdett, principal consultant at Hewitt New Bridge Street, said: “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.

“There may be several reasons for this. First, FTSE 250 companies are smaller and may be more mindful of the bottom line; they are likely to have a much stronger need to contain costs when compared with FTSE 100 companies.

“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.  We have certainly seen a higher level of intervention on FTSE 250 remuneration from shareholder groups compared to FTSE 100 pay policies – despite the fact the FTSE 250 has generally demonstrated greater restraint.”