While bosses were granted an average rise in salary of just 2.5 per cent, cash bonuses alongside benefits in kind and expected share awards bumped up the total payouts to a median figure of £3.7m.
According to a survey by Manifest and MM&K, the rise was mainly due to an explosion in the use of deferred bonuses and long-term incentives, which have been encouraged by regulators in order to foster a longer-term views of performance among executives.
The jump compares to a one per cent rise for employees of FTSE 100 firms. Manifest, a proxy voting agency, said the figures highlight the need to empower non-executives when setting pay policies. Chief exec Sarah Wilson added: “Remuneration committees need more support from shareholders in order to control management’s requests for greater and greater rewards.”