Mid-market private equity firms in the UK have increased the annual pay for chief financial officers at their portfolio companies by around 12% over the past two years in an attempt to put some clear water between them and their competitors.

Finance directors working for a mid-market private equity backed business now earn a minimum base salary of £173,381 on average, up from £154,788 in 2017, according to a survey from private equity recruiters Finatal. Since last year, their pay rose 5% from £165,000.