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According to research by the High Pay Centre, the median 2021 earnings of FTSE 100 CEOs will surpass the median annual wage for a full-time worker in the UK by 5:30 pm on January 6, 2021.
The research found that CEO pay levels in 2020 remained broadly the same while pay for other UK workers rose slightly. This meant that CEOs had to work 34 hours this year to overtake the median UK salary, 1 hour more than in 2020.
High Pay Centre director Luke Hildyard said chief executive pay is about 120 times that of the typical UK worker, up significantly from two decades ago.
"Estimates suggest it was around 50 times at the turn of the millennium or 20 times in the early 1980s," he said.
"Factors such as the increasing role played by the finance industry in the economy, the outsourcing of low-paid work and the decline of trade union membership have widened the gaps between those at the top and everybody else over recent decades."
The High Pay Centre’s research is based on analysis of information contained in companies’ annual reports and government statistics.
The median pay for FTSE 100 CEOs in 2019 was £3.61m whereas median pay for UK full-time workers was £31,461.
It remains to be seen how the COVID-19 pandemic will impact on CEO pay as full details are not yet available.
Pay ratio reporting
Regulations were introduced in 2018 to require UK-listed companies with more than 250 employees to report the pay ratio between the CEO and median UK employees. These regulations apply to financial years beginning from January 1, 2019.
According to research by the High Pay Centre, the median 2021 earnings of FTSE 100 CEOs will surpass the median annual wage for a full-time worker in the UK by 5:30 pm on January 6, 2021.
The research found that CEO pay levels in 2020 remained broadly the same while pay for other UK workers rose slightly. This meant that CEOs had to work 34 hours this year to overtake the median UK salary, 1 hour more than in 2020.
High Pay Centre director Luke Hildyard said chief executive pay is about 120 times that of the typical UK worker, up significantly from two decades ago.
"Estimates suggest it was around 50 times at the turn of the millennium or 20 times in the early 1980s," he said.
"Factors such as the increasing role played by the finance industry in the economy, the outsourcing of low-paid work and the decline of trade union membership have widened the gaps between those at the top and everybody else over recent decades."
The High Pay Centre’s research is based on analysis of information contained in companies’ annual reports and government statistics.
The median pay for FTSE 100 CEOs in 2019 was £3.61m whereas median pay for UK full-time workers was £31,461.
It remains to be seen how the COVID-19 pandemic will impact on CEO pay as full details are not yet available.
Pay ratio reporting
Regulations were introduced in 2018 to require UK-listed companies with more than 250 employees to report the pay ratio between the CEO and median UK employees. These regulations apply to financial years beginning from January 1, 2019.