The chief executives of top UK companies are making a significant amount of money compared to the average worker. A recent report by the High Pay Centre revealed that these CEOs earned around £4.4 million in pay and benefits last year, showing an increase from £4.22 million in 2024.
It was highlighted that these executives only need to work a few days into the year to surpass the annual income of an average UK worker. The median pay for a FTSE 100 CEO is 113 times higher than the average full-time worker’s salary of £39,039.
The report coincides with the recent passage of the Employment Rights Act, aimed at enhancing workers’ rights in the UK. The decline in trade union membership has been identified as a key factor contributing to the widening pay gap between executives and workers since the 1980s.
Andrew Speke, the interim director of the High Pay Centre, emphasized the need for corporate governance reform to address inequality. He suggested implementing measures like democratic worker representation on major company boards and increased taxation for companies paying excessive salaries to top earners.
TUC General Secretary Paul Nowak supported the Employment Rights Act as a step towards improving working conditions for millions of workers. He also called for measures to curb corporate excess and ensure worker representation on executive pay committees.
A spokesperson from the GMB union echoed concerns about the ongoing cost of living crisis for workers and emphasized the importance of the Workers’ Rights Act in securing fair pay for employees.