UK CEOs out-earn workers’ yearly pay in days
LONDON, UNITED KINGDOM — A new report reveals that FTSE 100 Chief Executive Officers (CEOs) have already earned more than the average UK worker’s annual salary.
According to High Pay Centre, a UK think tank that campaigns for fairer pay for workers, FTSE 100 CEOs with hourly pay exceeding the median salary of £34,963 ($44,441) have surpassed the typical employee’s yearly earnings as of January 4, 2024. The FTSE 100 is the collective name for the 100 largest UK companies by value.
The report also found that the average pay of FTSE 100 CEOs has increased by approximately 9.5% since March 2023, while median workers’ pay has increased by 6%.
High Pay Centre also highlighted rapid earning rates for top executives in FTSE 350 firms, major law and accounting partnerships, and banks — all outpacing average employees within the first month.
TUC General Secretary Paul Nowak attributed the inequality to political decisions and suggested measures like fairer taxes, worker representation on boards, and stakeholder collaboration to improve living standards.
“It doesn’t have to be this way. We need an economy that rewards work – not just wealth,” Nowak said.
The analysis showcases the staggering gap between top bosses’ remuneration and regular workers’ pay.
Luke Hildyard, High Pay Centre Director, warned that downplaying these disparities results in inequality and stagnation for the majority.
Laurence Turner of the GMB union agreed, pointing out such pay gaps’ negative business and economic impacts.
“Instead of channeling profits to those at the top, we need a sustainable recovery with more money in working people’s pockets.”
A Robert Half report earlier found that 41% of London companies plan to offer employees flat-rate salary increases in 2024, while 27% intend to match pay rises to inflation.
