Executive compensation at FTSE 100 companies reached unprecedented levels in the most recent financial year, according to analysis released by the High Pay Centre. Median chief executive pay climbed to £5.06m, representing an 8.6% increase from £4.66m in the prior year. This surge follows a period during the pandemic when executive pay remained relatively constrained due to economic disruptions.
The growing disparity between executive and worker compensation has become increasingly pronounced. Chief executives at Britain’s largest listed companies now earn 130 times the salary of the average full-time UK worker, up from a ratio of 124 times in the previous year. The current gap represents the widest earnings differential recorded in eight years, though it remains below the 137-times ratio reached in 2018.
Data showed that FTSE 100 firms distributed £856.6m in total pay during the period, with £550m directed toward chief executive compensation. Long-term and short-term incentive payments both increased substantially, with mean long-term incentives rising 20% to £2.7m and short-term incentives climbing 14% to £1.8m. Among the highest-paid executives, Pascal Soriot of AstraZeneca topped the list with £17.7m, followed by Emma Walmsley of GSK at £15.6m and Barclays’ CS Venkatakrishnan at £15m.
The High Pay Centre, which is closing after 15 years of advocacy for fairer compensation practices, characterized the findings as a concerning development requiring policy intervention. The organization has advocated for regulatory reforms including modifications to executive pay-setting processes and worker representation on corporate boards. Interim director Andrew Speke suggested the trend signals a disconnect between executive rewards and broader economic fairness, noting that addressing such disparities remains essential for maintaining confidence in the economic system.