The salaries of UK chief executives rocketed by 37% last year as they were rewarded with huge increases in their basic salaries.

A survey by the Guardian newspaper revealed that the increases take the average pay of a chief executive to £2,875,000, amounting to 11 times the increase in average earnings, and nearly 20 times the rate of inflation as measured by the consumer price index.

The total pay of a chief executive is calculated from basic salary, cash bonuses and pay-outs from share schemes.

The ratio between bosses' rewards and employees' pay has risen to 98:1, up from 93:1 a year ago.