29 May 2011
Last updated at 18:15 ET
The report says pay deals are too short term
There is a weakening link between the total pay increases that top UK chief executives receive, and the performance of their firms, a report has claimed.
The study found that while the average remuneration of bosses of companies on the FTSE 100 index rose 32% last year, the index itself increased just 9%.
Report co-author, business consultancy MMK, said remuneration committees were struggling to stay independent.
It added that pay deals for bosses were too short-term focused.
The report also found that over the past 12 years, some share prices had not increased, but pay deals for chief executives had quadrupled.
While the study welcomed a move towards Long Term Incentive Plans (LTIPS) – linking
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