Tim Clarke, chief executive of Mitchells & Butlers, Britain’s largest pub operator by turnover, earned £1.02m in 2007.

This was despite the business taking an exceptional charge of £155m in its full year results to 29 November to do with hedging in regards to this summer’s abandoned property joint-venture with Robert Tchenguiz. 

Clarke’s pay, revealed in yesterday’s annual report, includes a performance related bonus of £462,000 – 85% of the maximum he could achieve.

Earlier this month, the operator fell out of the FTSE 100 after an eight month stay and it has also seen its share price fall 20% in the past three months due to the credit crunch.

However Clarke, along with finance director Karim Naffah and two other executives, have agreed to defer their performance-related bonuses until the hedging is closed or rolled out as part of revived plans to work with Tchenguiz through a Real Estate Investment Trust.

Despite the handsome pay cheque, Clarke lags behind Punch Taverns boss Giles Thorley in the earnings stakes.

Thorley pulled in a total salary package of £11,276,000 in 2006 and is the third highest paid director in Britain.

Rooney Anand, Greene King’s chief executive, earned £891,000 last year.

Mark Angela earns £300,000 pay-off leaving Greene King, on top of his £442,000 >>

Mitchells & Butlers and Punch Taverns fall out of FTSE 100 >>

Mitchells & Butlers considers Tchenguiz property bid >>

Tchenguiz in talks with M&B to resurrect deal >>

By Christopher Walton