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CEO Pay · Corporate Governance · Inequality · UK Economy
UK FTSE 100 CEOs' median pay rose 6.8% to a record £4.58 million (€5.22m) in the 2024-25 financial year, marking the third consecutive year of record increases, according to research by the High Pay Centre.
The average or mean CEO pay jumped even more sharply, climbing 15.4% to £5.91 million (€6.85m), smashing the previous peak set in 2017-18. Thirteen FTSE 100 companies handed their CEOs packages worth £10 million (€11.6m) or more, an increase from ten firms in the prior year.
Overall, the UK’s largest listed firms spent a combined £1 billion (€1.16bn) on executive pay for 217 top roles, a sharp rise from £757 million (€877m) the previous year. Much of this increase stems from hefty payouts at Melrose Industries, where executives collectively pocketed £212 million (€246m), with former and current CEOs alone receiving nearly £59 million (€68 million).
Long-term incentive payments (LTIPs), share-based awards aligning leadership with company performance, were granted to 85% of FTSE 100 bosses. Critics, including the High Pay Centre, warn of deepening inequality, noting the typical FTSE 100 boss now earns 122 times more than a median UK full-time worker.
The report suggests enhanced worker representation in boardrooms and stronger trade unions could improve pay equality.