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Pay gap widens as UK bosses get 130 times average worker’s salary
The pay gap between FTSE 100 chief executives and their staff has widened to its highest level in eight years, according to the High Pay Centre, with bosses now earning 130 times the salary of the average full-time UK worker. The thinktank, in its final report before closing after 15 years, said the figures should serve as a wake-up call to policymakers, and comes as incoming prime minister Andy Burnham has called for renewed debate on excessive pay amid the ongoing cost-of-living squeeze.
Median pay for FTSE 100 chief executives rose 8.6% to a record £5.06m, up from £4.66m the previous year, while the ratio to the median UK worker's £39,000 salary climbed from 124:1 to 130:1. FTSE 100 firms spent £856.6m on executive pay overall, with 66 of 94 large listed companies increasing their chief executive's package. AstraZeneca's Pascal Soriot topped the rankings with £17.7m, while both long-term and short-term incentive payments rose sharply, by a fifth and 14% respectively.
In short
- FTSE 100 bosses now earn 130 times the average worker's pay
- Median CEO pay hit a record £5.06m, up 8.6%
- AstraZeneca's Pascal Soriot was the highest paid, at £17.7m
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Critics argue the widening pay gap represents problematic inequality that corrodes social cohesion, particularly as ordinary workers face cost-of-living pressures whilst executive compensation surges dramatically. They contend that stronger governance standards, pay-ratio disclosure requirements, and progressive taxation could better align corporate incentives with sustainable business practice and broader stakeholder interests without harming genuine competitiveness.
The case against
Supporters of market-determined pay argue that executive remuneration reflects genuine competition for rare talent and the substantial responsibilities CEOs carry. They maintain that shareholders, who own these companies, have legitimately chosen these packages because they drive performance and returns; restricting pay risks deterring top talent to international competitors and undermining British corporate performance when growth and productivity matter most for shared prosperity.
Explained simply
The pay gap between company chief executives and their workers is a measure of how much more those at the top earn compared to ordinary staff. It reflects the level of economic inequality within a firm. This metric has become increasingly important in discussions about how income is distributed across the workplace.
In the UK's largest publicly listed companies, known as the FTSE 100, this gap has recently widened. Chief executives now earn roughly 130 times what an average full-time worker makes, up from 124 times the year before. To put this in perspective, whilst an average worker might earn £39,000 annually, a typical chief executive in these companies earns around £5 million.
The gap is receiving attention because it raises questions about economic inequality within companies. Political leaders and business figures are now calling for wider discussions about whether such pay levels are appropriate. The timing reflects broader conversations about economic policy and worker welfare.
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