FTSE 100 chief executives who have worked continuously in the lead up to, and through, the downturn, are more likely to be penalised for poor share performance and rewarded when it improves.

This is according to research carried out by the Harvey Nash board practice and the London Business School MBA consulting team.

The study reveals that between 2 January 2006 and 31 December 2010 changes in share price accounted for roughly 30% of the variation in direct pay of the CEOs.

The research also shows that consumer and retail organisations had a much higher correlation between CEO pay and share performance than other sectors. About 20% of the change in direct pay for FTSE 100 CEOs can be explained by share price performance.

Harvey Nash CEO, Albert Ellis, says: “It’s perhaps time for the business secretary [Vince Cable] to calm the rhetoric on FTSE 100 executive pay and direct the Coalition’s resources on getting the real economy moving.

“The most important finding is that successful FTSE 100 CEO pay in the longer term appears aligned with the success and performance of the company as reflected in the share price over time. In the short term, however, executive churn at the top has increased as a result of the financial crisis and therefore there is little or no correlation between pay and share price performance in these organisations.”