The study finds that increased job security is the biggest factor in the improvement. Confidence is highest in London, where the figure is 45 per cent. Lex believes it would not take much for sales to exceed 500,000, a 7 per cent gain on last year.The big manufacturers are more cautious Vauxhall predicts sales of 488,000. "In the last quarter, he has been much more in evidence," said a spokesman at dealer Lex Service. It has had a disappointing first half of the year, with sales falling by 2 per cent against an overall market rise of 5 per cent.

"And as 60 per cent of August car sales are by private buyers, that augurs well for the month." About a quarter of all UK car registrations are made in August, when the new prefix letter is introduced, and the car companies gear much of their effort to winning market share then. The British motor industry is expecting the best August sales for seven years, even as it prepares itself for the abolition of the annual new registration rush. The optimism comes from signs that the private buyer is finally returning to the market. Others have been welcomed because they require bosses to put up their own money to get shares.The highest payout so far is to directors of HSBC, who could share an extra pounds 16m in a plan fiercely criticised by shareholders because it is tied to growth in earnings per share, with an easy threshold of 2 per cent a year over five years.Institutions are also upset with GKN, because it could be three quarters of the way down the league table for FT-SE 100 companies and its directors would still get a bonus.. Because it applied to all employees, not just directors, it had to be reasonable or the costs would spiral out of control.Also receiving Pirc's stamp of approval is a plan by catalogue retailer Argos, which has a maximum bonus of pounds 25,000, or pounds 50,000 worth of shares. Among the worst offenders, investors say, are Midland bank owner HSBC, engineer GKN, ferry operator P&O and Energis, the telephone subsidiary of National Grid. Most of the privatised utilities are also high on the list.Many firms are setting performance thresholds that will be too easy for directors to cross.

"Incentive plans should have challenging and appropriate performance criteria," said a spokesman for the Association of British Insurers.The full effect on directors' pay will only be seen when next year's annual reports come out.Executive remuneration became a hot issue in 1994 when it was revealed that British Gas chief executive Cedric Brown received a 75 per cent rise to bring his salary in line with other private-sector bosses.The Greenbury Committee on remuneration established in the wake of the row recommended that share options be replaced by long term incentive plans ("L-Tips") that would only kick in after performance criteria were met, and which would have to be voted on by shareholders.Firms argue that they need incentives to get the most out of their managers, and that their schemes meet the, admittedly vague, requirements of the Greenbury Committee.But Anne Simpson of Pensions and Investment Research Consultants (Pirc), which advises shareholders, said she could count on the fingers of one hand the L-Tips that are well designed Among them is the one instituted by grocery chain Asda. "Many funds are working on their own corporate governance statements. The current levels (of investor activism) are not high enough, but they're rising."Last week, United Utilities, the merged North West Water and Norweb water and electricity group chaired by Sir Des-mond Pitcher, rebuffed demands to lower its bonus scheme. It will see see chief executive Brian Staples make up to pounds 120,000 in bonuses this year on top of his pounds 300,000 salary, for only middling performance.At least eight institutions are planning to vote against the scheme at the AGM on Friday.Investor hackles have been raised at a raft of similar schemes already passed. Investors, led by Standard Life, Prudential and Norwich Union, are preparing to step up their assault on "incentives" that reward even underperformance. "We're doing everything in our power to encourage institutions to use their votes," said David Gould, manager of investment services at the National Association of Pension Funds. More than 100 large companies have schemes in the works, most of which are flawed, City institutions say. The Row over "fat cat" bonus schemes is set to escalate over the summer as institutions, already up in arms about over-generous plans at United Utilities, step up their campaign.

Problems included overstocking by the parent after it failed to forecast accurately the all-important Christmas period, projecting growth of as high as 50 per cent. In the event, annual sales grew at the still enviable rate of 20 per cent, but overstocking, coupled with distribution problems, led to its move into creditor protection last month.Escom UK followed suit, going into receivership last week.. Many of the Escom shops are too small," said one retail source.Sale documents for the company, which has annual turnover of pounds 200m, were sent out last week. Some 60 businesses have expressed interest, but the bulk of these are for individual sites.