Odgers Berndtson, global executive search firm, has warned that many companies face paying higher bonuses to senior executives next year as a result of the slump in sterling since the referendum.

Freebairn said: ‘Businesses have an opportunity to help build confidence and need to be proactive before issues around executive pay worsen as a bi-product of Brexit.

‘Remuneration committees should be proactive now to curb higher bonus payments which are triggered as the result of currency gains, rather than performance, boosting profits.’

He adds: ‘Chairmen of remuneration committees constantly tell us the current regulatory regime of "comply or explain" requires them to engage constructively on pay with shareholders.

‘Unfortunately they also tell us that this is a significant challenge - shareholders seem to have little appetite for 'explain' so boards end up 'complying'. This should be a key aspect of corporate governance to address in any reform package.’