REWARDING poor performance among managers and directors is widespread, with many being handed a pay bonus last year, a study has revealed.

Almost a third of managers ranked as under-performing were given a bonus last year, said the Chartered Management Institute.

The CMI - the only chartered professional body for management - added that almost half of senior managers and directors whose performance was rated as not meeting expectations received a financial bonus.

Research among more than 70,000 managers in 317 organisations showed they received an average pay rise of 3 per cent last year, the biggest since 2012.

The average bonus for managers was more than £8,800, rising to £44,600 for company directors, said the report.

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

"This unacceptable discrepancy between pay and performance is even more widespread among the ranks of senior managers. Unfortunately, it seems to be a lot easier to reward poor performance than to face the awkwardness of having difficult conversations with underperforming staff.

"Change must start at the top with chief executives' pay, as there's plenty of scope at that level to bring pay and performance more in line.

"To improve performance, managers must be prepared to have honest conversations with their staff and provide regular feedback and coaching. Managers should also have clear targets and be measured against them. Organisations and their employees will only benefit from a culture in which pay closely reflects performance."