Chief executives at Britain’s largest companies had a pay cut last year. However, profits fell further, ensuring a decade-long trend of bosses taking a rising share of corporate profits continues, to the dismay of many shareholders.

The average pay for chief executives of a company in the blue chip FTSE 100 index was £5.23 million pounds (€6.7 million) last year, down from £5.36 million in 2014, an examination of corporate filings shows.

However, FTSE 100 profits fell over 40 per cent, helping to lift chief executives earnings to the equivalent of 0.58 per cent of their companies’ total profits for the year, from 0.32 per cent in 2014.

This represents a leap over the past decade. In 2005, chief executives compensation, including pensions and share awards, was just 0.1 per cent of pre-tax earnings, the Reuters analysis of annual reports over the period shows.

Rapid growth in executive pay has long drawn criticism from some politicians and headlines denouncing corporate “fat cats”. Now, shareholders are increasingly raising their concerns, notably over a bumper deal for BP’s boss Bob Dudley as the oil giant reported its biggest ever annual loss.

Measured against share prices, the balance of gains and losses has also tipped in chief executives’ favour.

Executive pay consultants say UK packages are well above continental European levels but fall short of those in the US.

Most companies deny there is a problem with pay. They say they have responded to investors’ demands to link packages to performance, limiting fixed payouts including pension contributions.

In recent weeks, investors have expressed their anger at annual general meetings. Over half of BP shareholders voted against Dudley’s £14 million pay deal for 2015, a year when the company lost $6.5 billion.

Campaigners have also criticised a £70 million package for WPP chief Martin Sorrell.

– (Reuters)