The head honchos of top FTSE 100 companies have already pocketed more money by midday today than an average worker will earn throughout the entire year. According to the High Pay Centre, the average pay and perks for these chief executives reached £4.4 million last year, up from £4.22 million in 2024.
This data reveals that FTSE 100 CEOs need less than three days in 2026 to surpass the annual earnings of an average UK worker, with their median pay being 113 times higher than the typical full-time worker’s salary of £39,039.
The report, released annually, coincides with the recent approval of the Employment Rights Act, which mandates fair access for trade unions to speak with workers and ensures new employees are informed about their union joining rights.
The decline in trade union memberships has been a significant contributor to the widening gap between executive and worker pay since the 1980s, leading to increased inequality in the UK and other Western nations. The High Pay Centre’s Charter for Fair Pay advocates for effective implementation of the Employment Rights Bill and additional measures to empower workers in corporate decision-making.
Andrew Speke, interim director of the High Pay Centre, emphasized the stark disparity in how the work of executives is valued compared to the majority of workers. He underscored the need for comprehensive corporate governance reforms, including worker representation on major company boards and higher taxation for firms excessively compensating top earners.
TUC General Secretary Paul Nowak praised the Employment Rights Act for its potential to enhance working conditions for millions, while calling for measures to curb corporate excess and ensure worker representation in executive pay decisions.
A spokesperson from the GMB union highlighted the ongoing challenges faced by workers amidst a cost of living crisis and emphasized the importance of the Workers’ Rights Act in securing fair compensation for workers.
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