Key facts
- Median pay for FTSE 100 CEOs hit a record £5.06m in the last financial year.
- This is an 8.6% increase from the previous year.
- The pay gap between CEOs and average UK workers is now 130 times, the widest in eight years.
- Pascal Soriot of AstraZeneca was the highest-paid CEO, earning £17.7m.
- The High Pay Centre advocates for reforms such as a 'fat-cat tax' and worker board representation.
The pay gap between chief executives of Britain's largest listed companies and the average worker has widened to its largest in eight years, according to data from the High Pay Centre. Median pay for FTSE 100 CEOs reached a record £5.06m last year, an increase of 8.6% from the previous year. This means CEOs are now paid 130 times the salary of the average full-time UK worker, up from 124 times.
The High Pay Centre noted that executive remuneration has been steadily increasing since the pandemic. The thinktank, which is campaigning for fairer pay, stated that the substantial growth in the gap should serve as a wake-up call. Its interim director, Andrew Speke, expressed hope that a change in prime minister and a renewed focus on economic fairness would bring economic inequality and corporate excess back to the political agenda.
The median pay for a full-time UK worker is £39,000. While the total amount paid out to FTSE 100 executives fell slightly from £1bn to £857m, this was attributed to an exceptionally high award in the previous year. Sixty-six of the 94 companies analyzed increased their CEO's pay package. Long-term incentive payments rose by a fifth to £2.7m, and short-term incentive payments increased by 14% to £1.8m.
Pascal Soriot, CEO of AstraZeneca, was the highest-paid FTSE 100 boss for the third time in four years, earning £17.7m. GSK's former CEO Emma Walmsley was second with £15.6m, and Barclays CEO CS Venkatakrishnan received £15m. Shell's Wael Sawan and Standard Chartered's Bill Winters also featured in the top earners.
The High Pay Centre argues that excessive executive spending comes at the expense of the wider workforce and is calling for reforms. These include a 'fat-cat tax', appointing two workers as board directors, and fully implementing Labour's employment rights bill. Speke warned that failing to address such inequality could reduce faith in the economic model and accelerate the rise of right-wing populism.