The latest research from the High Pay Centre has shown that the average top executive in the UK’s largest companies now earns 130 times more than the typical worker. This gap has increased from 124 times the previous year and is currently at its highest level in eight years. The median annual pay and benefits for a CEO of a FTSE 100 company have hit a new peak of just over £5 million, marking an 8.6% rise from £4.66 million in the previous year.
According to Andrew Speke, the interim director at the High Pay Centre, the widening disparity between executive and worker pay should serve as a warning to those neglecting the issue of escalating executive compensation. The research reveals that FTSE 100 executive pay has been steadily rising for the past four years, surpassing the growth rate of worker salaries.
The High Pay Centre has urged the new Prime Minister, Andy Burnham, to address economic inequality and excessive corporate compensation. Failure to tackle these disparities could erode trust in the current economic system and fuel the growth of right-wing populism.
Despite its efforts to shed light on excessive executive pay, the High Pay Centre is facing closure due to a decline in funding. Data shows that 66 FTSE 100 companies increased their CEO’s pay packages, with an average 8.6% rise, significantly outpacing the 3.6% increase in pay for the average UK worker. Pay committees at major corporations defend these high salaries as necessary to attract top talent and compete globally.
The High Pay Centre advocates for a “fat cat tax” where companies would face a surcharge on profits if executive pay exceeds a set multiple of the median UK worker’s salary. This tax could generate funds for education and social programs, helping to address income inequality at its root. Additionally, the Centre proposes reforms to enhance employee representation in corporate decision-making and calls for more transparency in reporting executive pay and worker wages.
(Note: The late Karim Bitar of Convatec was included in the data, with Jonny Mason replacing him in late 2025.)
