Managers have been given average pay rises of 4% in recent months, although those in the public sector have received less, according to a report by pay analysts Incomes Data Services (IDS).

The research found that bosses in finance firms had the best wage rises of around 4.2%, while those in public sector organisations received increases of 3.2%.

A study of 134 settlements covering 26,000 managers showed that pay rises had kept pace with the rate of inflation.

Board members received the highest awards at 4.5%, while they were also paid bonuses of up to 40% of their salary.

Steve Tatton of IDS says: "January is a key date in the annual pay round and salary awards at the start of the year tend to set the pace for coming months.

"Unless inflation starts to come down soon the pressure will be on employers to maintain management increases at a high level during the spring."

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