According to the report, the pay of the average FTSE 100 CEO increased from £4.1 million to £4.7 million last year, despite shareholders being given powers to reject excessive pay deals.
The High Pay Centre has urged the Government to take “radical action” and close the pay gap. Suggestions include requiring firms to cap executive pay at a fixed ratio when compared to lower paid employees.
The report adds that public perception of an executive “elite” is damaging trust in business.
High Pay Centre director Deborah Hargreaves said it was time to “get serious” about executive pay.
“The Government's tinkering won't bring about a proper change in the UK's pay culture,” she said.
"We need to build an economy where people are paid fair and sensible amounts of money for the work that they do and the incomes of the super-rich aren't racing away from everybody else.”
The research follows investors voting down a £20 million pay deal for Burberry’s new CEO Christopher Bailey last week. In a rare move, 52% of shareholders voted against the fashion house's remuneration report.