The median total remuneration of FTSE 100 bosses increased by 10% last year to £3.7m, according to a survey conducted by Manifest, the proxy voting agency, and the remuneration consultancy MM&K.
The survey showed that the rise was five times the increase in average earnings across the economy and came at a time when the FTSE100 index fell 5%.
The Manifest/MM&K total remuneration survey, showed that FTSE 100 bosses’ pay has grown from 47 times their employees’ average earnings in 1998 to 139 times in 2011.
The survey also found basic salary of FTSE 100 chiefs rose 2.5%, but deferred bonuses and long-term awards boosted total earnings.
It also provided details of the top 10 highest-paid executives all of who received at least double the £4.2m average. Barclays, WPP and AstraZeneca are reported to be the highest rewarding companies, awarding their chiefs of £20.9m, £11.6m and £11.3m respectively.
Cliff Weight, director of the independent remuneration consultant MM&K, said: “These results highlight two things. First, that the main problems with corporate governance and pay are in the very largest companies, where directors’ remuneration is only a small percentage of costs, profits and shareholder value and there is little to stop remuneration continuing to increase.”
Sara Wilson, chief executive of Manifest, said: “Remuneration committees need more support from shareholders in order to control management’s requests for greater and greater rewards. Independent remuneration consultants play an important part in ensuring the non-executives get unbiased advice.”
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