London, August 12 (FFN) – CEOs of the largest UK companies enjoyed record pay in 2023, with nine firms awarding their top executives over £10 million (€11.69 million) each, according to a report by the think tank High Pay Center. The report, based on Reuters’ findings, highlights a significant rise in executive compensation.
The median salary for CEOs of companies listed on the FTSE-100 index increased by 2.2% last year, reaching £4.19 million, the High Pay Center revealed. However, the think tank noted that the growth in CEO pay had slowed compared to the previous two years.
The High Pay Center’s survey also found that the average salary of a FTSE-100 CEO was 120 times higher than that of a full-time British worker. Meanwhile, employees across various sectors in the UK, including train drivers and general practitioners, are planning protests this year for better pay and conditions.
“The rise in the average CEO pay reflects a small number of companies offering substantial rewards, rather than a widespread increase in salaries,” noted Luke Hildyard, Director of the High Pay Center. He added that in the UK’s “business culture,” the interests of investors are often prioritized over those of employees, customers, suppliers, and other stakeholders.
Executive compensation in leading UK companies has sparked shareholder anger in recent years, particularly regarding the disparity between average employee earnings and CEO salaries. However, some fund managers in the UK support calls for greater flexibility in boardroom pay to retain top talent and prevent a “brain drain” to countries where pay is less contentious.
Last year’s highest-paid UK CEO was Pascal Soriot of pharmaceutical company AstraZeneca, who earned £16.85 million, followed by Erik Engstrom of information and analytics group RELX, who received £13.64 million, according to the High Pay Center’s survey based on company financial information.
