CEOs in the UK’s top 100 companies now pocket an average of £5.3m* each year, or 386 times that of a worker earning the National Living Wage, according to new analysis by The Equality Trust.
Over two thirds (67%) of FTSE 100 CEOs are paid more than 100 times the average UK salary. Ninety per cent of FTSE 100 CEOs are paid at least 100 times more than the National Living Wage.
Equality Trust analysis also found that FTSE 100 CEOs are now paid:
• 165 times more than a nurse.
• 140 times more than a teacher.
• 132 times more than a police officer.
• 312 times more than a care worker. **
This comes as recent research shows that a combination of rising inflation and pay restraint means that average real pay is now falling in the public sector, and is expected to continue falling over the next three years. Forecasts suggest that average real pay in the public sector will fall back below 2004-05 levels by the end of the parliament (2019-20). ***
Dr. Wanda Wyporska, Executive Director of The Equality Trust, said:
“The people who educate our children, look after our grandparents, and keep our families safe have seen their pay frozen, while fat cat CEOs continue to gorge themselves on obscene and undeserved rewards. They’re also stretching far away from their own employees. Being a top company CEO in the UK is like being a lottery winner - every year - guaranteed.
“Pay inequality drives wider inequality, and we know this is bad for businesses, bad for our economy and bad for our health, our education and our wider society.
“We need far greater transparency on company pay practices to challenge poverty pay and executive excess at the same time. That’s why we’re calling on Government to introduce mandatory reporting for large and medium businesses on the pay gap between their highest and average paid employee. Only then can we create a sense of trust and common purpose essential to build an economy and society that works for all.”
The Equality Trust has developed a petition calling on Government to introduce mandatory pay ratios. To sign the petition, please visit here.
A complete ranking of FTSE 100 CEOs from highest to lowest paid can be found in the Trust’s full Pay Tracker report.
Notes to editors
The Equality Trust is a registered charity that works to improve the quality of life in the UK by reducing economic inequality. UK income inequality is among the highest in the developed world and evidence shows that this results in poorer mental and physical health, higher violent crime, poorer educational outcomes and lower levels of trust. Inequality affects us all. For further comments or to arrange an interview, contact John Hood on 07580 651 337 or firstname.lastname@example.org
* The Equality Trust analysed all the 2015 Annual Report & Accounts for all companies in the FTSE 100 (at 13 March 2017) as filed at the UK official registry (Companies House). We chose 2015 as this is the last year for which all the FTSE 100 have filed. The figure we have taken from the Annual Report & Accounts is the CEO’s single total figure of remuneration figure in each case. We found the average CEO total remuneration figure is £5,271,803.
** ONS Annual Survey of Hours and Earnings, 2016 (table 14.7a) https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/occupation4digitsoc2010ashetable14