By midday today, the average executive of a leading company in the FTSE 100 index has already earned more than what an average worker would make in an entire year.
According to a study by the High Pay Centre, chief executives of major British public companies received around £4.4 million in total compensation last year, up from £4.22 million in the previous year.
This analysis shows that CEOs only need to work less than three days in 2026 to exceed the annual earnings of an average UK worker. The median pay for a top executive in a FTSE 100 company at £4.4 million is 113 times higher than the average full-time worker’s pay of £39,039.
The release of this data coincides with the recent Royal assent given to the Employment Rights Act, which includes provisions to enhance trade union access to workplaces and inform new employees of their right to unionize.
The High Pay Centre highlights the decline in trade union membership as a significant factor contributing to the widening pay gap between executives and workers, leading to increased inequality in the UK and other Western countries since the 1980s. The Centre’s Charter for Fair Pay, issued over a year ago, advocates for the effective enforcement of the Employment Rights Act and additional measures to empower workers in corporate decision-making.
Andrew Speke, Interim Director of the High Pay Centre, expressed concerns over the substantial disparity in value between executives and workers, calling for comprehensive corporate governance reforms to address pay inequality. He emphasized the need for democratic worker representation on major company boards and proposed higher taxes on companies paying excessive salaries to top earners, with the revenue directed towards education and reducing social inequalities.
TUC General Secretary Paul Nowak welcomed the Employment Rights Act as a positive step towards improving working conditions for millions of workers, while also urging the government to curb corporate excess by ensuring worker representation on executive pay committees.
A GMB union spokesperson highlighted the ongoing financial challenges faced by workers, stressing the importance of the Workers’ Rights Act in promoting fair pay practices and leveling the playing field for employees.
Top Earning CEOs in the FTSE
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