Around 25 per cent of chief executives at FTSE 100 firms have had pay frozen while bonuses have fallen for third consecutive year, say researchers at PwC.

PwC’s analysis of the UK’s biggest businesses with year-ends from 30 September revealed that bosses’ median average bonus was £1.14 million, down one per cent on 2012.

It is the third consecutive year of bonus reductions and tougher performance assessments despite signs of economic recovery and a 10 per cent increase in the FTSE 100 during 2013.

The median salary for a FTSE 100 chief executive was £898,000 and CEOs that did received a pay rise generally received less than three per cent.

Asked about pay rises in future, six in 10 companies said they expected the overall level of senior executive pay to be within 10 per cent of current levels over the next five years.

Tom Gosling, head of PwC’s reward practice, said: “The 2014 AGM season is shaping up to be another year of restraint. Despite fears that executive pay inflation would take off again as the economy recovers, this doesn’t seem to be the case.”