Bosses at digital set-top box manufacturer Pace Micro Technology have seen their pay packets slump because of poor profits at the firm.

The Saltaire firm, which recently announced it was to shed 180 jobs, has seen its profits and turnover plummet.

Directors at the troubled firm, which is set to cut a fifth of its workforce to reduce costs, have also lost out because of poor market conditions.

The firm's board members missed out on bonuses this year after the company failed to hit profit targets. Last year directors shared £708,000 in bonuses.

Malcolm Miller, Pace chief executive (pictured), received a £300,000 salary this year. Together with benefits his total pay package for the year was £324,000, down from the £589,000 he got last year.

Finance director John Dyson, 54, received a £198,000 salary as part of a total pay package of £201,000, down from £353,000.

Tim Fern, the firm's chief technology officer, 39, who was appointed to the board in January 2001, received a £159,000 salary as part of a £173,000 package, up from £156,000 for the part of the previous year he served. Chairman Sir Michael Bett received fees of £60,000, with no change.

The struggling business recently announced its turnover had fallen from £523.6 million to £351.8 million.

Last year profits at the firm shot up to more than £44 million but this year profits fell to just £13.1 million.

Sir Michael Bett said it had been a difficult year for the firm.

He said: "Over the previous three years Pace succeeded in growing revenues and profits. The financial period under review, however, reflects the turbulence in the broadcasting industry and the difficult trading environment faced by digital TV operators globally.

"In the year just started we expect the group's UK revenues to fall further, reflecting the difficult trading conditions. In the USA, Europe and Asia business will grow slowly.

"Turnover in the 2002/3 financial year is expected to be at a lower level in the first half than the second half of the year just ended, but is expected to improve in the second half to levels higher than the equivalent period as regions outside the UK develop.

"The results for the year as a whole will depend as always on the appetite of the operators for product and our success in launching new products.

"For the longer term, the board believes that due to its strong core technologies and its commercial position as one of the top five global players, Pace is well positioned to exploit all opportunities in the digital TV market."

Last year workers who lost their jobs when Pace axed its manufacturing arm hit out against "fat cat" directors who cashed in on bonuses and share options, after it emerged that Malcolm Miller had exercised options on shares to net more than £8.5 million, on top of his £289,000 performance bonus and £300,000 salary.

A recent report found pay awards to directors are falling, but are still well ahead of inflation. Directors across the UK pocketed rises of just 5.9 per cent last year, the lowest for ten years, compared with 12.9 per cent for the previous year.