Record salaries for UK chief executives as pay rises for third year in a row newshub

Record salaries for UK chief executives as pay rises for third year in a row

London – The bosses of Britain’s largest listed companies have taken home a third successive year of record-breaking pay packages, with a new report revealing that more than £1bn was handed out to just 217 executives in the last financial year. The analysis by the High Pay Centre think tank underscores the persistent disconnect between executive remuneration and the financial struggles faced by many households across the country.

Median pay climbs to new record The report found that the median pay for a FTSE 100 chief executive increased to £4.58 million in 2024/25, up from £4.29 million the previous year, an increase of nearly 7%. This rise means the average FTSE 100 CEO is now paid 122 times the median salary of a full-time UK worker. The total amount spent on the pay of 217 executive roles across FTSE 100 firms reached more than £1 billion, a significant jump from the £757 million reported in the year prior. Much of this increase is attributed to a massive £212 million pay award to executives at Melrose Industries.

Contrasting pay against economic backdrop The surge in executive pay comes at a time when many Britons are still grappling with a cost of living crisis, with high inflation and stagnant wages eroding purchasing power. The Bank of England has also recently warned that rising food prices could fuel further inflation, adding to the financial pressure on families. The High Pay Centre argues that this “excessive spending” on top earners often comes at the expense of fair pay increases for the wider workforce. The director of the High Pay Centre, Luke Hildyard, noted that the figures “will feed a growing sense that low and middle earners don’t get a fair share of the wealth that their work helps to create, while those at the top take much more than they merit or need.”

Melrose and other top earners The engineering firm Melrose Industries was a major driver of the overall pay increase, with its executives, including former boss Simon Peckham, taking home nearly £59 million, primarily through long-term incentive payments. This payout pushed Melrose to the top of the pay league table, displacing AstraZeneca’s chief executive, Pascal Soriot, who had held the position for the previous two years. The number of FTSE 100 companies paying their leaders £10 million or more also increased, from 10 to 13 in the past year, highlighting a continued trend of high rewards for those at the very top.