This isn't the politics of envy, just a drive for openness based on what makes good business sense

John Monks

TUC general secretary John Monks said the findings showed government action was needed to close the pay gap between directors and staff.

He said: "With such excessive pay packages for company directors it is becoming clear to staff that "there's one rule for us and one rule for them".

In October, the government announced that shareholders are to be given the right to veto excessive pay rises for company directors.

'More transparency'

Mr Monks said more transparency in pay deals was also needed to encourage restraint.

The TUC said this should include details on the rate of increase in directors' basic salaries for each of the last three years, accompanied by the average increase for staff elsewhere in the company.

Where the rise is higher for directors, the company's remuneration committee should offer an explanation, the TUC added.

Mr Monks said: "This isn't the politics of envy, just a drive for openness based on what makes good business sense."