Pay for chief executives of FTSE 100 companies has returned to pre-pandemic levels amid a high degree of support from investors, but the year ahead could prove “more challenging” as the cost-of-living crisis continues.

Accountancy group Deloitte said the median pay package for CEOs of the UK’s largest 100 listed companies has rebounded to £3.62 million, up from £2.78m in 2020. This was the result of a pick-up in annual bonuses and payouts from long-term incentive plans.

Median pay fell in 2020 for the fourth consecutive year as chief executives took voluntary pay cuts at the outset of the pandemic, while also receiving significantly reduced annual profit-related bonuses. The downward trend was compounded by investor pressure to “align executive pensions with rates available to the wider workforce”.

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However, Deloitte added there has been high levels of investor support for directors’ remuneration in the current year. Of the 17 companies that have so far put an executive pay policy to shareholders, just four received less than 80 per cent of votes in favour.

Deloitte chairman Stephen Cahill cautioned that this may not continue to be the case.

“With rising cost of living and an uncertain geopolitical environment, the year ahead could be more challenging,” he said.

“Investors will rightly hold companies to account where performance does not justify payouts or where executives are seen to be insulated from the wider employee experience. Balancing fairness and competitiveness will play a part in the long-term success of London’s capital markets.”

Of the FTSE 100 companies under review, 11 have put a voluntary “say on climate” resolution to a shareholder vote in 2022. Five received less than 90% of votes in favour of these climate actions and disclosures.