BAE Systems' chairman, Dick Olver, and its chief executive, Ian King, made £745,000 and £2.2m, respectively, in 2012 – a year in which the aerospace giant failed in its audacious merger attempt with EADS and profits fell by 6 per cent.
Mr King's total pay included £963,000 salary and a £1.2m bonus, and in total was 8.6 per cent lower than in 2011. Mr Olver's total payout was 5.8 per cent lower than the year before.
BAE has signalled that Mr Olver, who took over as chairman in 2004, will step down at next year's annual shareholder meeting, at the latest, in the wake of the failed merger attempt. But he could leave earlier if the search for his successor goes smoothly.
Writing in BAE's annual report, Mr Olver said: "It is important that this process is driven by the objective of finding the right person, not just by the timetable."