According to new research, the bosses of Britain’s biggest listed companies have taken home record pay for the third year running.
The analysis shows that the typical FTSE 100 chief executive earned 122 times more in the last financial year than the average full-time UK worker. Median pay for a chief executive rose to £4.58 million, up from £4.29m the previous year, an increase of nearly 7%.
FTSE 100 companies paid more than £1 billion to just 217 executives, compared with £757m the year before. Much of the increase was linked to awards at engineering group Melrose Industries, whose executives shared £212m. The company, which sparked controversy with its hostile £8bn takeover of GKN in 2018, has previously faced criticism over its reward structures.
Long-term incentive payments (LTIPs) have also become more common. Last year, 84 of the 100 chief executives received LTIPs, up from 81 the year before. The number of companies paying their top leaders £10m or more also rose, from 10 to 13.
The findings come as many households are struggling with rising living costs, and the Bank of England have warned of further inflation pressures. Critics argue the widening gap between boardroom and worker pay highlights more profound inequality in the UK economy.
The report also pointed to a gender divide, with female leaders at the top of corporate Britain continuing to earn less than their male peers.
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