Sawdah Bhaimiya
Jan 4, 2024,
BI
The median pay of bosses at the top companies in the UKis 109 times more than the median worker pay.
Malte Mueller/Getty Images
The CEOs of top companies in the UK will earn the median annual salary of a full-time worker in just three days.
The CEOs of top companies in the UK will earn the median annual salary of a full-time worker in just three days.
That's according to analysis of CEO pay and average pay in the UK by the High Pay Centre.
These CEOs take home a median pay of £3.81 million ($4.8 million), per the report.
The bosses of top companies in the UK will have earned more money by 1 p.m. on Thursday 4 January than the average worker makes in a year, a new analysis by the think tank High Pay Centre found.
The research, published on Thursday, analyzed the most recent CEO pay data published in the company's annual reports and combined them with government statistics that show pay levels across the UK.
It found that the wages of CEOs of FTSE 100 companies — an index of the top 100 companies listed on the London Stock Exchange by market cap — will overtake the pay of the average UK worker in just three and a half days, highlighting a disproportionate wealth gap.
Per the report, FTSE 100 CEOs have a median annual pay of £3.81 million ($4.8 million), which is 109 times the median full-time workers' pay of £34,963 ($44,000).
Meanwhile, a partner at one of the UK's most prestigious law firms with an average annual pay of £1.92 million ($2.42 million) would need to work until January 8 to outstrip the pay of the average worker in the UK.
And top bankers – with an average pay of £800,000 ($1.1 million) – would need to work until January 16 to do the same, the report said.
The pay gap isn't much better in the US with CEOs at 500 major firms making 272 times more than employees in 2022, with an average compensation of $16.7 million, according to the AFL-CIO.
Bosses at Britain's biggest companies will have earned more in 2024 than the typical worker will make this year by 1pm TODAY
Some earn much more and will have even bigger pay gaps with workers
By MARK SHAPLAND EXECUTIVE CITY EDITOR
DAILY MAIL
PUBLISHED: 3 January 2024
Bosses at Britain's biggest companies will have earned more by lunchtime today than the typical worker will over the whole of 2024.
Statistics reveal that a typical FTSE 100 chief executive now takes home £3.81million, over 109 times more than the average salary of £34,963.
By 1pm today – dubbed 'Fat Cat Thursday' – some executives will have taken just two-and-a-half working days into January to outstrip the yearly salary of many staff, said the High Pay Centre think-tank.
But some earn much more and will have even bigger pay gaps with workers. The 1pm mark is one hour earlier than when the median worker's annual pay was estimated to have been passed last year.
Among the biggest FTSE, or Footsie, earners last year was Albert Manifold, chief executive of construction group and Tarmac-owner CRH.
By MARK SHAPLAND EXECUTIVE CITY EDITOR
DAILY MAIL
PUBLISHED: 3 January 2024
Bosses at Britain's biggest companies will have earned more by lunchtime today than the typical worker will over the whole of 2024.
Statistics reveal that a typical FTSE 100 chief executive now takes home £3.81million, over 109 times more than the average salary of £34,963.
By 1pm today – dubbed 'Fat Cat Thursday' – some executives will have taken just two-and-a-half working days into January to outstrip the yearly salary of many staff, said the High Pay Centre think-tank.
But some earn much more and will have even bigger pay gaps with workers. The 1pm mark is one hour earlier than when the median worker's annual pay was estimated to have been passed last year.
Among the biggest FTSE, or Footsie, earners last year was Albert Manifold, chief executive of construction group and Tarmac-owner CRH.
Bosses at Britain's biggest companies will have earned more by lunchtime today than the typical worker will over the whole of 2024 (file image)
He was paid £10.4million, 259 times more than his average worker, giving CRH the largest pay gulf of any blue-chip company.
Pascal Soriot, of pharmaceutical giant AstraZeneca, was the highest-earning FTSE 100 chief with £15.3million while Charles Woodburn, chief executive of defence giant BAE Systems, earned £10.7million. Tory MP Bob Blackman asked: 'Can they justify these huge salaries? Are their talents so rare? I struggle to answer that. They are paid far outside what the average individual earns.'
Astonishingly, the figures follow calls from business groups for executives to be paid even more for the UK to compete as a global financial centre.
They included Julia Hoggett, head of the London Stock Exchange, who spoke of a 'lack of a level playing field' between Britain and other countries, notably the US.
Luke Hildyard, High Pay Centre director, said: 'Lobbyists spent much of 2023 arguing that we are too concerned with gaps between the super-rich and everybody else. They think that economic success is created by a tiny number of people at the top and that everybody else has very little to contribute.
Statistics reveal that a typical FTSE 100 chief executive now takes home £3.81million, over 109 times more than the average salary of £34,963 (file image)
'When politicians listen to these misguided views, it's unsurprising that we end up with massive inequality, and stagnating living standards for the majority of the population.'
The figures also showed that chief executives of FTSE 250 companies will need to work until January 10 for their average pay of £1.32million to overtake the annual salary of the typical UK worker.
A partner at one of the 'magic circle' of elite law firms, who earn on average £1.92million, would reach this level by January 8.
A partner at a 'Big Four' accountancy firm, average pay £871,000, would reach the milestone on January 16 as would a banker at one of the FTSE 100 banks.
Those in the top 1 per cent of UK earners, making at least £145,000, will have overtaken the annual pay of the median worker by March 29.
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