UK (Parliament Politics Magazine) – According to a new report highlighting growing income inequality, FTSE 100 CEOs will make more money by midday Monday than the average worker in a year.
The High Pay Centre report shows that executives will reach a major pay milestone on the third working day of 2025, with a median hourly wage of £1,298.
FTSE 100 bosses earn an average salary of £4.22m, 113 times greater than the £37,430 made by the average full-time worker, this means they will exceed the worker’s annual wage within 29 hours.
The significant milestone will be hit earlier this year, compared to 1 pm on the third working day of 2024.
As reported by The Guardian, the latest data reveal that workers’ pay increased by 7%, outpacing the 2.5% rise for bosses, but executive salaries are still at historic record levels.
This yearly report found a growing difference in pay between leaders and workers, a gap that is getting larger, while critics are urging politicians and unions for strict and prompt action.
The general secretary of the Trades Union Congress, Paul Nowak stated,
“Every working person plays a part in producing Britain’s wealth. But while millions of low-paid workers are still feeling the effects of the cost of living crisis, people at the top are taking more than their fair share.”
Luke Hildyard, head of the High Pay Centre, argued that financial disparities contribute to political division and proposed workers’ representation on firm boards could help reduce the gap between employees and leaders.
He said,
“A feeling that the economy works for the enrichment of a tiny elite at the expense of wider society is an underrated cause of populist anger and support for extremist politics.
Mr Hildyard added,
“Policymakers who fail to address this inequality are storing up some big problems for the future.”
Pascal Soriot, the CEO of AstraZeneca, has been the top-paid boss in the FTSE 100 for many years. He earned £18.7m last year, even with some shareholder objections. Erik Engstrom, CEO of RelX and Tufan Erginbilgiç from Rolls-Royce both earned £13.6m.
The High Pay Centre document estimates that FTSE 100 CEOs earn £1,298.46 per hour, or approximately £22 a minute, working an average of 62.5 hours per week.
Watchdogers argue that these bosses deserve large salaries, highlighting that competitive pay is necessary to secure the best executives. In 2023, the head of the London Stock Exchange recommended higher pay for UK company leaders to compete with US competitors.
Worker’s unions argue that any pay hikes should benefit the workforce. The TUC expresses hope that the Labour government’s employment law will enhance pay bargaining rights and job protection and promote union participation. But, industry groups have strongly opposed the legislation, warning that it will lead to higher costs.
The Financial Times Stock Exchange represents a series of stock market indices that track the performances of firms publicly listed on the London Stock Exchange (LSE). The FTSE Group, also known as “Footsie,” was established in 1984 as a collaboration between the Financial Times and LSE.
FTSE has three essential indices, including the FTSE 100, FTSE 250, and FTSE All-Share Index.
The FTSE 100 consists of the 100 significant companies on the LSE by market capitalization, indicating the UK’s economic condition. The FTSE 250 tracks the next 250 big firms, while the FTSE All-Share Index includes both, covering nearly 98% of the UK’s market cap.