FTSE 100 chief executives enjoyed bumper pay rises in 2011 while their employees got virtually no increase at all, according to a new report.
The average wage earned by chief executives in the UK's biggest firms was £4.8m, up 12% on the year before.
In contrast, employees at FTSE 100 companies saw an average pay rise of 1%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Shareholders are enraged, the survey results are likely to increase their state of agitation," the report said.
The report comes as advertising giant WPP is the latest blue chip firm facing a shareholder rebellion over executive pay deals.
Shareholders are angry about plans for its Chief Executive, Sir Martin Sorrell, to get a 30% pay rise to £1.3m, as well as increases in his bonus arrangements that could see him pocket an extra £6.5m a year.
If the vote at Wednesday's AGM goes against the company it will mark a record sixth revolt against executive pay in one year as the so-called 'shareholder spring' continues.
The study shows its boss, Sir Martin Sorrell, is the second highest paid chief executive in the FTSE 100, earning a total of £11.6m in 2011.
Sorrell comes in behind Barclays boss, Bob Diamond, who earned £20.9m.
The pay figures are made up of salary, bonuses and any share options that the Chief Executives could cash in during the year.
The report, complied by corporate governance expert Manifest and pay consultants MM&K, called this "realisable remuneration".
It said the formula was designed to replicate rules the government is bringing in requiring companies to publish one overall figure for executive pay.
Companies who have lost the vote on executive pay this year include insurance giant Aviva, gold miners Centamin and Central Rand Gold, car dealership Pendragon, and explorer Cairn Energy.
However, the votes are non-binding and and can be ignored by the company.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
