Ryan FowlerFTSE 100 CEOs have already earned more than the median UK worker’s annual salary by midday on 6 January 2025, according to calculations by the High Pay Centre (HPC). The estimates highlight that despite some improvements in worker pay, the gap between executives and regular employees remains significant.
The analysis shows that the median FTSE 100 CEO pay, excluding pensions, stands at £4.22m—113 times higher than the median full-time worker’s salary of £37,430. Although CEO pay has risen by 2.5% in the past year, this increase was outpaced by a 7% rise in median worker earnings. Despite this narrowing, HPC notes that CEOs still needed less than three working days to surpass what the average UK worker earns in an entire year.
In October 2024, the Government introduced an Employment Rights Bill aimed at addressing workforce inequalities. Key provisions include ensuring trade unions have reasonable access to workplaces and requiring employers to inform new employees of their right to join a union. The decline in trade union membership has long been identified as a significant factor in the widening CEO-to-worker pay ratio, which has grown steadily since the 1980s.
The HPC’s Charter for Fair Pay, published last autumn, called for further measures to strengthen employee representation and improve pay fairness. “Without more consistent action, pay inequality will continue to hinder efforts to create a more balanced economy,” said an HPC spokesperson.
The organisation has urged the Government to effectively implement the Employment Rights Bill and develop additional reforms to give workers a stronger voice in corporate decision-making, arguing that such steps are essential to tackling long-term income inequality.
