Executive pay will increase in 2012, according to 79% of senior reward professionals across the FTSE 350 surveyed by professional services firm PriceWaterhouseCoopers.

Of firms expecting to make rises, 65% will increase base salaries only, while 30% will also improve benefits. Pay rises are expected to be between 2-4%, broadly in line with 2011 rates.   

However, 13% of firms expect to implement pay freezes, and 85% of respondents expect no increase in bonuses.

Sean O’Hare, reward partner at PwC, says: “Even moderate pay increases in line with inflation are likely to prove controversial. But whether anticipated salary rises play out next year will depend on whether markets improve. Increases that are not aligned to company and share price performance are likely to meet strong resistance from shareholders.”