Pay Gap Between FTSE 100 CEOs and Workforce Widens

Despite increasing investor opposition to soaring executive pay packets, new research noted that average FTSE 100 CEO pay increased from £2.46 million in 2020 to £3.41 million in 2021. The report, published by UK think tank High Pay Centre and the Trades Union Congress (TUC), said that median CEO pay is now 109 times that of the median UK fulltime employee. Companies in the top ten for highest paid CEOs last year include Astra Zeneca (£13.86 million), Lloyds Banking Group (£8.48 million) and Schroders (£8.48 million). Collectively, FTSE 100 firms awarded $720.21 million to 224 executives, the report said, adding that average annual bonuses also increased to £1.4 million companies to £828,000 in 2020. Further, FTSE 250 CEOs averaged a 38% pay increase in 2021 compared to the previous year. High Pay Centre and TUC have called for regulatory reforms, including introducing requirements for companies to include a minimum of two elected workforce representatives on the remuneration committees that set pay and ensuring guaranteed trade union access to workplaces. The report said: “This research raises questions around inequality, pay and responsible business practice in the UK. Very high executive pay is a big part of the cost-of-living problem. If large employers are paying millions more to already very wealthy executives, that makes it harder to fund pay increases for low- and middle-income workers.” 

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