Royal Mail's board is preparing to hand the postal service's chief executive Moya Greene a pay rise of around 5% in an effort to keep her at the company, according to a report.
The decision is yet to be finalised as consultations with key shareholders, including the Government, which still owns 30% of the company, are yet to take place, Sky News reported.
Her salary, which has stayed at the same level for five years, could jump to £535,000 from £498,000, it added.
The final details will be revealed in Royal Mail's annual report in June.
Canadian Greene, who has held the top job at Royal Mail since 2010 and oversaw its controversial stock market flotation in 2013, was paid £1.35 million in salary and bonuses last year, according to the company's 2014 annual report.
That compares to the average FTSE 100 boss' £4.7 million package, according to the The Manifest – MM&K Annual Survey of Executive Pay.
Gallery: Top paid FTSE 100 bosses
She declined a pay rise last year, avoiding the wrath of business secretary Vince Cable, who had sought to curb excessive executive pay.
Outgoing Royal Mail chairman Donald Brydon once described her as the worst paid FTSE 100 CEO.
