This report from the CIPD and the High Pay Centre examines FTSE 100 CEO pay packages, which show that rewards at the top have dropped by almost a fifth, but still remain extraordinarily high.
The report looks at how CEO pay in the UK’s largest firms has changed between the financial year to 2015 and the financial year to 2016. It finds that over this period, FTSE 100 CEO remuneration has fallen by 17%, from £5.4 million in 2015 to £4.5 million in 2016.
However, while there has been a significant drop in CEO pay, it would still take the average UK full-time worker on a salary of £28,000 (median full-time earnings) 160 years to earn what an average FTSE 100 CEO is paid in just one year. Although the average pay packages of the 25 highest paid CEOs have dropped by 24% to £9.4m in 2016, rewards for the 32 lowest paid chief executives in the FTSE 100 have increased as firms ‘chase the median’.
The CIPD and the High Pay Centre look forward to seeing the Government’s responsible business reforms when they come out later this year.