FTSE100 CEO’s book 10% pay rise
FTSE100 CEO’s have seen their average pay packages grown by 10% over the last year, now amounting to 183 times that of the average UK employee, the latest High Pay Centre research shows.
According to the annual survey, the average CEO pay package is now at GBP 5.48 million in 2015, compared to GBP 4.96 million in 2014.
Over the last six years, the ratio between average salaries of median full-time workers in the UK and those of FTSE100 CEO’s has increased from 160:1 to 183:1, none of the FTSE100 companies currently publishes its CEO to employee ratio and only one company, TUI AG, has employee representatives on its board.
According to the High Pay Centre, WPP’s Sir Martin Sorrell remains the FTSE100 executive with the highest salary, reporting a pay rise from GBP 42.9 million last year to GBP 70.4 million this year. His salary is followed by that of Berkeley Gropu’s CEO Tony Pidgeley, at GBP 23.2 million, and Reckitt Benckiser’s CEO Rakesh Kapoor, whose annual pay package amounts to 23.1 million.
Stefan Stern, director of the High Pay Centre, comments on the results: “There is apparently no end yet in sight to the rise and rise of FTSE100 CEO pay packages. In spite of the occasional flurry from more active shareholders, boards continue to award ever larger amounts of pay to their most senior executives.
“The High Pay Centre was delighted by Theresa May’s recent intervention on this issue. There now seems to be political will and momentum behind attempts to reform top pay.
“In particular we support two of her main proposals: that companies should be obliged to publish the ratio between the pay of the CEO and the average worker in the business, and that the voice of the ordinary employee must be heard in discussions over executive pay” he adds.