The FTSE 100's top bosses have just set a new record, with median remuneration soaring to £5.06 million last financial year – an 8.6% increase from £4.66 million in the previous period. This significant jump puts chief executives at the UK's largest listed companies on a par with professional footballers and high-flying financiers when it comes to earnings.
As a result, FTSE 100 CEOs are now receiving a staggering 130 times more than the average full-time worker, whose median salary stands at £39,000. This marks an increase from 124 times the average salary in the preceding financial year and is the largest disparity observed since March 2018, when the ratio reached 137. The collective spend on executive pay by FTSE 100 firms has risen to £856.6 million, with approximately £550 million allocated to remunerating chief executives.
The upward trend in executive pay has persisted since the pandemic, following a period where some CEOs accepted reduced pay and bonuses due to lockdown-related economic pressures. Sixty-six out of the 94 large listed companies analysed in the report increased their chief executive's pay package from the previous year. Notable increases include a fifth consecutive rise in mean long-term incentive payment (LTIP) to £2.7 million, and a 14% increase in mean short-term incentive payment (STIP) to £1.8 million.
Among the highest earners, Pascal Soriot of AstraZeneca topped the list with a total remuneration of £17.7 million. Emma Walmsley of GSK secured second place with £15.6 million in her final year, while Barclays' CS Venkatakrishnan received £15 million – the largest package for a Barclays boss since 2011. Shell's Wael Sawan and Standard Chartered's Bill Winters rounded out the top five, receiving £13.7 million and £12.7 million respectively, with Sawan's pay rising significantly despite a reported slump in profits for Shell.
The High Pay Centre, which has campaigned for fairer pay since its founding in 2011, concludes its 15-year campaign with this report. Its interim director, Andrew Speke, noted that the growing gap should serve as a 'wake-up call' and expressed hope that the incoming government would focus on economic fairness, tackling corporate excess and reducing economic inequality.