Executive pay is continuing to rise well ahead of inflation with even larger increases in annual bonuses, according to the annual survey of remuneration trends by Rrev, the shareholder advisory group.

Salary increases for chief executives of FTSE 100 companies rose 8 per cent at the median in 2005-06, from £650,000 a year to £700,000. Their annual bonuses were up 39 per cent at the median, from £450,000 to £627,000.