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Directors' pay grew at almost double the rate of UK average earnings this year, new research has found.

The average salary increase for an executive director was seven per cent this year, compared to a 3.7 per cent increase in the seasonally adjusted average earnings index, according to business advisory firm Deloitte.

Nonetheless researchers stressed that the average wage increase for a chief executive was lower, at 6.4 per cent, possible reflecting the fact that more of the remuneration of company bosses is linked to performance.

Bonus levels for FTSE 100 companies have also increased significantly over the past year, with the average payout climbing to 94 per cent of a director's salary. Last year the figure was 75 per cent.

However Deloitte stressed that shareholders would still expect to see a fall in bonus payouts if a company's performance declined.

Meanwhile researchers revealed that the number of executive directors employed in FTSE 350 companies has declined for the fifth year running.

According to Deloitte there are now 20 per cent fewer executive directors in the UK than there were five years ago.

The disappearance of almost 360 positions is attributed to new corporate governance guidelines, which require increased independent representation on company boards.

Deloitte warns that the trend could see more important business decisions taken outside the boardroom.

"This changing shape of the board can be a positive thing, leading to more focussed and high quality debate," said Carol Arrowsmith, head of the remuneration team at Deloitte.

"However, there is also a danger that as the executive element of the board shrinks, the development of strategy is pushed out of the boardroom and into executive committee meetings leaving non-executive directors with a lack of involvement in key decisions," she stressed.

With the opportunity of becoming an executive director of a UK-listed company declining, Deloitte said that senior managers looking for a higher role might increasingly look to the private equity sector as an alternative.

Commenting on the potential impact of such a trend on pay, Ms Arrowsmith added: "The competition from private equity puts increasing pressure on remuneration committees to ensure remuneration is structured to reward superior performance and to retain and motivate senior executives."