FTSE 100 bosses earn 130 times average UK worker as pay hits record
Record pay for FTSE 100 chief executives has pushed the earnings gap with average workers to its widest in eight years, setting up a clash with Britain's incoming prime minister over corporate excess.
Median pay for FTSE 100 chief executives reached £5.06m in the last financial year, an 8.6% increase that marks the highest level on record. The surge pushes the ratio of boss-to-worker pay to 130 to one, up from 124 times the previous year and the largest gap since 2018.
For a European market still adjusting to post-Brexit rules, the figures highlight a stark divergence in how corporate wealth is distributed. FTSE 100 firms spent a combined £856.6m on executive pay last year. The rise was largely driven by incentive structures, with mean long-term incentives up a fifth to £2.7m and short-term bonuses rising 14% to £1.8m.
Company-level data reveals sharp contrasts across sectors and regulatory environments. Pascal Soriot of AstraZeneca topped the list with £17.7m. Barclays chief CS Venkatakrishnan took home £15m, the largest package for a Barclays boss since 2011, made possible after the UK scrapped EU rules limiting banker bonus pay. Emma Walmsley of GSK surged to second place with a near-50% pay rise to £15.6m in her final year, making her the only woman in the top 10. Meanwhile, Shell’s Wael Sawan received a 60% pay rise to £13.7m despite a slump in profits.
The timing of the release carries political weight across the continent. Andy Burnham is set to become prime minister on Monday, having previously called for a public debate on excessive pay and promised relief for families struggling with the cost of living. The median full-time UK worker earns £39,000.
The data comes from the High Pay Centre, a thinktank that is closing after 15 years of campaigning. Its interim director, Andrew Speke, warned that unchecked executive rewards carry broader economic risks. "As our findings show, this is the fourth year in a row that FTSE 100 executive pay has risen, and this growth is starting to substantially outstrip growth in worker pay," Speke said. "A failure to tackle such disproportionate and inefficient levels of inequality will only further reduce faith in our current economic model and help to accelerate the rise of rightwing populism."
The thinktank is urging the new government to overhaul the pay-setting process. It wants a "fat-cat tax", mandatory worker representation on boards, and full implementation of Labour’s employment rights bill to ensure workers are informed of their trade union rights.
