The head honcho of a leading FTSE 100 company has likely earned more by midday today than an average worker’s annual income. A recent study by the High Pay Centre revealed that top executives at major British listed companies took home an average of £4.4 million in total compensation last year, up from £4.22 million in 2024.
The analysis indicates that CEOs will surpass the yearly earnings of an average UK worker in less than three days of work in 2026. The median pay package of £4.4 million for a FTSE 100 chief executive is 113 times higher than the average full-time worker’s salary of £39,039.
The report, released annually, follows the recent enactment of the Employment Rights Act, which grants trade unions better access to workplaces and requires employers to inform new employees of their right to unionize. The High Pay Centre attributes the widening pay gap between executives and workers to the decline in trade union memberships since the 1980s, urging for fair pay practices and greater worker representation in corporate decision-making.
Andrew Speke, interim director of the High Pay Centre, highlighted the stark disparity in how executives and workers are valued, calling for corporate governance reforms and increased taxation on companies that excessively compensate top earners to address income inequalities and promote social mobility.
TUC General Secretary Paul Nowak commended the Employment Rights Act for improving working conditions but stressed the need for stricter regulations on executive pay. Likewise, a GMB union spokesperson emphasized the importance of the Workers’ Rights Act in ensuring fair wages for workers amidst ongoing economic challenges.