'Fat cat' pay rises attacked by MPs

City bosses who award themselves "fat cat" pay rises were criticised by MPs today.

The Treasury Select Committee report on the savings crisis said the huge pay awards were undermining the faith of investors in the City.

Committee chairman John McFall said there appeared to be no link between the return on savers' funds and the performance-related bonuses paid to chief executives.

Mr McFall questioned whether the pay awards were justified in an industry "with the heart taken out of it". He said many of the huge bonuses were "out of line" with performance.

The Committee singled out Standard Life for criticism, pointing out that most of the firm's executive directors had seen performance related pay increases of 30 per cent between 1999 and 2001 despite the insurer's admission this was a "period of turbulence".