Executive pay has continued to rise, with directors at the UK’s top 100 listed companies earning 120 times more than average salaries according to a new report from Incomes Data Services (IDS).

Directors now earn an average of £2.43 million a year, according to the IDS, having risen by a fifth this year driven by a 44% rise in share awards.

Meanwhile, official figures put the average salary at £27,000.

Steve Tatton, editor of the IDS report, said: "The pattern of pay growth highlights the complex make-up of directors' remuneration. Salary rises may be modest but this can be more than made up for by the receipt of incentive payments. When such incentives pay out, they can pay out substantial sums, giving a significant boost to directors' earnings."