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Economics

In the News

Executive Pay - FTSE bosses earn 86 times more than average UK worker in 2020

Graham Watson

19th August 2021

The vexed issue of executive pay is highlighted in a new High Pay Centre investigation into the extent to which CEOs do better than the rest of us.

In short, the bosses of the UK's largest public companies on average earn 86 times more than the average worker: some earn considerably more. You might think about the reasons for this and whether such a disparity is justified.

Median pay of FTSE 100 executives was down 17% to £2.69m last year, but this is still 86 times UK's average full-time wage.

In related news, this is an interesting take on the nature of wage and earnings inequality in the United States - with the rate of growth of executive pay far outstripping that of ordinary workers. "American CEOs make 351 times more than workers. In 1965 it was 15 to one."

"When taking into account stocks, which now make up more than 80% of the average CEO’s compensation package...chief-executive pay has risen by...1,322% since 1978. …[to] nearly 9 times what the average person will earn over a lifetime in just one year."

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