A new study from the UK reveals that the financial gap between the country’s top executives and the average worker is wider than ever. CEOs of the UK’s biggest companies now earn more in a year than the average worker can expect to earn in a lifetime.
The latest economic inequality report from the High Pay Centre, a UK think tank, shows that the median pay for CEOs of the UK’s 100 largest listed companies (FTSE 100) reached a record £4.19 million (€4,97 million) in 2023.
This is around 120 times more than the average full-time British worker earns per year, which the report puts at £34,963.
– The huge pay gap between executives and the wider UK workforce is a result of factors such as the decline of trade union membership, low levels of worker participation in business decision-making and a business culture that puts the interests of investors before workers, customers, suppliers and other stakeholders, said Luke Hildyard, Director of the High Pay Centre.
The report also shows that there are now more CEOs earning more than £10 million a year, with nine companies awarding eight-figure pay packages in 2023, compared to four companies last year.
🇬🇧Top 10 FTSE 100 companies with the highest CEO pay:
1. AstraZeneca Pascal Soriot £16.85m
2. RELX Erik Engström 13.64
3. Rolls-Royce Tufan Erginbilgiç 13.61
4. BAE Systems Charles Woodburn 13.45
5. GSK Emma Walmsley 12.72#FTSE100 #stock #trading #salary #CEO— JarvisData (@Jarvis_Data) August 14, 2024
Aztra Zeneca’s CEO at the top
Astra Zeneca CEO Pascal Soriot topped the list for the second year in a row with an income of £16.85 million – a whopping 482 times more than the average full-time UK employee earns per year.
The surge in executive pay comes at a time when many British households are struggling with rising living costs and low wage growth. Critics argue that companies’ generous pay packages for their top executives make it difficult to fund pay rises for the rest of the workforce.
Pascal Soriot, the CEO of AstraZeneca took home a £16.85 MILLION salary last year.
We need to build public health – not private wealth. It's time to put an end to pharma profiteering at the world's expense.https://t.co/lHoZSQxZXc
— Global Justice Now (@GlobalJusticeUK) August 13, 2024
Luke Hildyard warns that the growing gap between the highest paid and the average worker could have far-reaching consequences for the UK economy and society at large.
– These developments have been very good for those at the top but it is more questionable whether they are in the interests of the country as a whole, he adds.
As CEO pay continues to soar, there is growing concern that economic inequality threatens to undermine the cohesion of British society. Many argue that if this trend continues, it could lead to increased social tensions, with a further polarized society where ordinary citizens are increasingly marginalized.
