The bosses of Next are having to cut their coat a bit more snugly because of the recession.

Simon Wolfson, the clothing chain's youthful chief executive, is taking a 15% pay cut after profits slipped 14% last year. His total package dropped from £979,000 to £831,000 as his annual bonus was slashed by more than 60%.

In the coming year he and his fellow directors at the clothing chain will also be restricted to a mere 1% rise on their base salaries taking his from £675,000 to £682,000.

The remuneration committee said this was “in line with the wider company award” putting executives in line with staff even if the base number is somewhat greater.

And with the current share price at 1429p Wolfson has little chance of picking up any of the millions of pounds worth of shares he might have received under a major reward plan put up by the company in 2005. The shares would have to hit and stay above 2050p for the three months to this July for that bet to be triggered.

Jonathan Dawson, the former investment banker who chairs the remuneration committee, said: “The economic outlook means it is likely to be much more difficult to achieve significant earnings growth in the next few years.”