CEO-worker pay gap the widest for 8 years
The gap in pay between the average FTSE 100 chief executive and a typical UK worker has reached its widest in eight years, according to research.
Data published today by the High Pay Centre think tank has found that the pay of the CEOs of Britain’s biggest companies increased by 8.6% in 2025-26, up from a median of £4.66 million to £5.06 million. This is the highest level on record and the fourth consecutive year that CEO pay has grown.
The research shows that the median FTSE 100 CEO is now paid 130 times the median UK full-time worker, up from 124:1 in 2024-25.
A total of 66 firms (70%) increased their CEOs’ pay packages from the previous year, up from 61% of firms that did so last year.
The mean payment for CEOs’ long-term incentive plans increased 20% from £2.26 million last year to £2.71 million, while the mean short-term incentive award increased 14% from £1.61 million to £1.84 million.
The High Pay Centre’s interim director Andrew Speke said: “The substantial growth in the gap between executive and worker pay in the past year should be a wake-up call to those who’ve turned a blind eye to rising executive pay.
“As our findings show, this is the fourth year in a row that FTSE 100 executive pay has risen, and this growth is starting to substantially outstrip growth in worker pay.
“This comes against a backdrop of the High Pay Centre being forced to close due to a decline in funding for organisations challenging extreme wealth and inequality.
“We hope that a change in prime minister and a renewed focus on economic fairness will lead to economic inequality and corporate excess returning up the political agenda. A failure to tackle such disproportionate and inefficient levels of inequality will only further reduce faith in our current economic model and help to accelerate the rise of right-wing populism.”
The High Pay Centre, which was established in 2011, announced its closure earlier this month, citing considerable funding challenges.
The think tank The High Pay Centre report argues that excessive spending on top earners by leading firms often comes at the expense of pay increases for the rest of the workforce.
It has called for reforms to regulations affecting the corporate pay-setting process, including full implementation of the Employment Rights Act 2025, the inclusion of workers on company boards, increased transparency in companies’ pay practices, and a “fat cat tax” whereby firms would pay a surcharge on yearly profits if single-figure remuneration for an executive director exceeds specified multiples of the median UK worker’s salary.
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