Basic salaries for the top full-time executive, usually the chief executive, grew 6.1 per cent, year-on-year, compared to last year's 6.4 per cent increase, according to the study, which looked at all FTSE 350 companies except investment trusts.
The retail price index rose 4.1 per cent between January 2007 and January 2008.
The heads of the largest companies – those with market capitalisation of ￡25bn or more – now average ￡1.08m in annual salary, while those at the small end of the study, with market cap of ￡300m to ￡500m now average ￡360,000.
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