Extract from IDS Executive Compensation Review 304, June 2006

Management pay awards peak

The three months to April are the busiest time of year in the pay calendar, with more salary reviews and bonus pay-outs taking place during the quarter than at any other period. For this reason, our latest survey of managerial and professional salary reviews conducted during the quarter provides the clearest picture of current pay trends and sets the tone for the coming months. Altogether, we collected details on 235 separate reviews covering some 75,000 professionals.

Following 18 months of a steady upward trend in the pace of salary growth for managers and professionals our latest analysis suggests that the level of increases may have peaked. Put in a wider context, this quarter’s findings should be viewed against a longer-term background in which the average award for private sector managers and professionals has been climbing steadily since the three months to July 2004, reaching a high-point in the quarter to January 2006. This article provides a comprehensive picture of the current settlement levels for managers and professionals, and includes tables showing a breakdown of the latest pay awards by three types of review – across the board only, merit-only and combined general and merit awards.