MOST directors got average pay rises of four per cent last year, dispelling stories of "fat cat" salary increases, according to a report published today.

A poll of 4,500 company directors found that their pay increased in line with other workers over the past year, at just above the rate of inflation.

The Institute of Directors (IoD) said its poll showed that "contrary to the general impression", huge increases were not being awarded to the vast majority of executives any more. The survey showed directors' pay averaged £63,000, although executives at companies with more than £500m annual turnover were not included in the research because they represented less than one per cent of the UK's three million firms.

George Cox, director general of the IoD, said: "It's good to be able to put the real picture on the table. The headline-grabbing stories about fat cats give a totally distorted picture of life in the average British boardroom. Very high rewards are the exception nowadays and, as one might expect, confined to the very largest of companies, which is where you also find the odd example of excess.

"The problem is that the publicity the latter attracts damages confidence in business leadership generally and is in danger of distorting public policy."

Research group Incomes Data Services also reported that basic salaries of chief executives in the top 100 firms quoted on the Stock Market rose by an average of 14.8 per cent in the past 12 months.