The research into the pay of 70,000 managers concluded that a third of those given bonuses were rated as "not meeting expectations."

 

The Chartered Management Institute's National Salary Survey found that the average bonus for under-performing company directors was £45,000.

 

The average bonus for below-par senior managers was almost £9,000.

 

CMI chief executive Ann Francke said: "Too many managers are reaping the rich rewards of their positions despite being poor performers.

 

"Unfortunately, it seems to be a lot easier to reward poor performance than to face the awkwardness of having difficult conversations with underperforming staff."

 

Ms Francke explained that bonuses may now be considered a part of normal pay, rather than a reward for hard work.

 

"Another reason so many low performers get bonuses is that there is often a culture of rewarding past glories.

 

"The longer that goes on, the more people come to rely on the money... employers really should think about whether it would be better to address the level of basic pay."

 

The CMI said that companies are finding it increasingly difficult to find, recruit and hold on to staff. And it is this skills shortage that could be forcing up wages and bonuses, economists¹ believe.

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