Should CEO pay be capped? Have your say

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Pay for the UK's FTSE 100 (^FTSE) CEOs has hit a record high for the third year in a row, according to research, as typical workers continue to struggle with rising living costs.

An annual review by the High Pay Centre found that the median pay for a FTSE 100 CEO increased to £4.58m in 2024/25 from £4.29m in the previous financial year.

The think-tank's analysis, published on Sunday, showed that the average FTSE 100 CEO is now paid 122 times the medium UK full-time worker.

Read more: Top executive pay in UK’s biggest firms hits new record as more take home £10m

The research also showed that the number of FTSE 100 companies paying their CEOs £10m or more grew by 30% to 13 firms in 2024/25.

FTSE 100-listed companies spent £1bn on the pay of 217 executive roles in the past financial year, the High Pay Centre found, up from £757m in 2023/24. However, the think-tank said that much of this increase reflects executive pay awards at aerospace manufacturing company Melrose Industries (MRO.L), where the executives were paid £212m.

Melrose recorded the highest FTSE 100 CEO pay in 2024/25, according to the think-tank's report, at a total of £58.93m. However, Peter Dilnot was appointed as CEO in March 2024, so this amount was split between him and former boss Simon Peckham, with the biggest component of pay relating to a long-term incentive plan (LTIP).

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LTIP's refers to a compensation plan, typically to senior executives, that aims to incentivise longer term performance. In the past financial year, 84% of FTSE 100 companies paid their CEO an LTIP, up from 81% in 2023/24.

The research also highlighted a gender pay gap in CEO compensation, with median pay for the nine companies that had female leadership for the entire financial year amounting to £3.27m. By comparison, median pay for the companies which had a male CEO for the while financial year came in at £4.64m.

To help ensure fairer levels of executive pay, the High Pay Centre put forward policy recommendations, including introducing worker representation on company boards and reforming corporate reporting on pay.

The authors of the report said that these pay "disparities matter, not just for optics, but because they shape trust in institutions, influence workforce morale and engagement, and affect public perceptions of business legitimacy. In an era where millions of workers face financial pressures and public services are stretched, the optics of multi-million-pound executive rewards are especially stark."

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