The average value of pension schemes for FTSE 100 chief executives has increased by nearly £20,000 in the last two years, a survey of firms accounts has revealed.
The examination of remuneration across the UK's top companies by actuarial consultants LCP found that individual pension provision was £242,000 in 2013, up from £225,000 in 2011.
The study also concluded more executives were taking cash as an alternative to contributions to either defined benefit or defined contribution schemes.
A combination of pension payments and cash, or cash alone, was provided to two-thirds of bosses, according to the most recent annual reports, to give them 'maximum flexibility' in their entitlement. This is up from just 37% who received some form of cash payment as part of their pension package in 2011, the report found.
Median compensation for cash in lieu has also increased, from 25% to 30% of basic salary over the two years, the analysis stated.
Report author Mark Jackson, a partner at LCP, said the higher level of cash alternatives to pensions was the main reason for the overall increase in costs.
The trend towards cash alternatives is likely to continue due to the Treasury lowering tax-free allowances for both annual and lifetime pension contributions, the report added. These are being cut from next April from £50,000 to £40,000 for annual contributions, and from £1.5m to £1.25m over a working life.
LCP concluded that, based on current pension payments, more than half of executives in registered DB pension schemes (55%) would face a hike in their tax burden as a result if regimes do not change.
Among the other findings in the report, the proportion of FTSE 100 chief executives who had defined benefit pension contributions as part of their overall remuneration fell from 43% in 2011 to 30% this year. Despite this, DB pensions continue to be more valuable and costly to provide compared to other pension options. The cost of a DB pension had increased on average from 60% in 2011 of annual basic salary to 66% in 2013.
Jackson said the overall challenges to UK pension provision are 'striking'.
He added: 'There is plenty for companies to do in reviewing their pension compensation packages and for executives in monitoring their savings - both present and future - against their new allowances.'