Median pay for FTSE 100 chief executives has climbed to a record £4.58 million, around 122 times the pay of the median full-time UK worker, according to the High Pay Centre’s (HPC) annual review.
The report shows CEO pay rose by 6.8 percent in 2024/25, up from £4.29m in the previous year. Mean CEO pay also jumped sharply, from £5.12m to £5.91m – a 15.4 percent increase that eclipses the previous high of £5.79m set in 2017/18. This marks the third year of record CEO pay growth, the pay body said.
Collectively, FTSE 100 firms spent over £1bn on the pay of just 217 executives, compared with £757m the previous year. The single biggest award went to Melrose Industries, where executives received £212m, driving much of the year-on-year increase. The number of companies paying their CEOs more than £10m also increased by 30 percent, from 10 in 2023/24 to 13 in 2024/25.
In response to the findings, the think tank said reforms are needed to give employees greater influence in corporate governance.
Pay gaps and incentives
The HPC analysis shows the median FTSE 100 CEO now earns 122 times the median full-time UK worker, a level almost unchanged from the 123:1 ratio reported last year. The report also found that 84 percent of FTSE 100 companies awarded their CEO a Long-Term Incentive Payment (LTIP) in 2024/25, up from 81 percent in the previous year. The average LTIP payout rose from £2.008m to £2.258m.
Gender disparities remain. Ten women served as CEOs of FTSE 100 firms for at least part of the year, with all remaining in post at the end of the financial year. Nine companies had female leadership for the entire financial year. Their median pay amounted to £3.27m, compared with £4.64m for male CEOs.
The HPC argues that high levels of executive pay often come at the expense of wider workforce remuneration. The organisation is calling for reforms to the pay-setting process, alongside full implementation of the Employment Rights Bill. This includes measures requiring employers to inform staff of their trade union rights and allowing unions reasonable access to workplaces. HPC points to evidence showing a strong link between higher union membership and narrower CEO-to-worker pay gaps.
The report advocates for the introduction of worker directors on company boards. According to HPC, enabling employees to elect at least two directors would improve boardroom understanding of operational realities, strengthen accountability and encourage a longer-term focus on sustainable company success.
Transparency is another key recommendation. Despite company annual reports running to hundreds of pages, HPC notes that they often omit basic details about workforce pay distribution. The think tank wants regulations to require consistent disclosure on the pay of top earners beyond the CEO, as well as clearer reporting on how pay is spread across the organisation, including how many staff earn below the living wage.
