FTSE 100 CEO pay has reached new heights for the third straight year, sparking concerns during ongoing financial hardship. The average chief executive now earns 122 times more than the typical full-time UK worker.
Recent analysis shows executive compensation has risen sharply since the pandemic. Many top bosses initially took pay cuts, but rewards have since rebounded and exceeded pre-Covid levels.
Median FTSE 100 CEO pay increased nearly 7% in the last financial year, climbing to £4.58 million. It rose from £4.29 million the year before. This upward trend coincides with a cost of living crisis still affecting millions across the UK.
According to new data, Britain’s largest listed companies spent over £1 billion on executive pay last year. This total was distributed to just 217 individuals. That represents an increase of almost £250 million compared with the previous year.
Melrose Industries drove much of this rise. The firm, known for its controversial GKN takeover in 2018, awarded its executives £212 million. Co-founders Peter Dilnot and Simon Peckham topped the pay chart, taking home nearly £59 million combined.
In June, Melrose triggered public outrage by distributing over £175 million in shares to 21 current and former leaders. Peckham, former chair Christopher Miller, and ex-finance director Geoffrey Martin received the largest portions.
Long-term incentive payments (LTIPs) also contributed to the rise. Last year, 84 of the 100 top FTSE bosses received LTIPs, up from 81 the year before.
Meanwhile, Pascal Soriot of AstraZeneca dropped to third place after earning £14.7 million. He trailed behind Melrose leaders and the bosses of education firm Pearson. Pearson’s Andy Bird and Omar Abbosh earned almost £19 million together.
The number of companies paying CEOs over £10 million rose from 10 to 13. This happened while households across Britain faced higher food costs and stagnant wages.
Gender inequality remains an issue. Female FTSE leaders earned a median of £3.27 million. Men earned £4.64 million in the same roles.
The High Pay Centre argues that FTSE 100 CEO pay often diverts money from general staff wages. The group calls for reforms, including clearer pay reporting and stronger worker representation on boards.
They also support Labour’s employment rights bill, which would improve pay transparency and inform workers of their union rights.
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