'Fat Cat Thursday': FTSE 100 bosses' pay overtakes annual average today

FTSE 100 executives' earnings fell in the last year
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Robin de Peyer4 January 2018

A FTSE 100 executive will have earned more money by the end of today than the average UK worker will all year.

The average chief executive from the biggest companies earns £28,758 – the median annual salary – in just three days.

That is despite the fact that the mean pay of chief executives at FTSE 100 companies fell by a fifth last year, from £5.4 million to £4.5 million.

Today has been dubbed ‘Fat Cat Thursday’ by the High Pay Centre think tank and HR industry body the CIPD.

The High Pay Centre says the average boss of one of Britain largest 100 listed firms earns 120 times more than the average full-time worker in the UK.

Stefan Stern, director of the High Pay Centre, said: "While it was encouraging to see a tiny amount of restraint on pay at the top of some FTSE 100 companies last year, there are still grossly excessive and unjustifiable gaps between the top and the rest of the workforce.

All listed companies will have to publish the pay ratio between bosses and workers under new corporate governance reforms this year.

The highest paid FTSE 100 bosses last year

Sir Martin Sorrell (WPP) - £48.1 million

Arnold Donald (Carnival) - £22 million

Rakesh Kapoor (Reckitt Benckiser) - £14.6 million

Pascal Soriot (Astrazenica) - £13.3 million

Erik Engstrom (Relx) - £10.5 million

"Publishing pay ratios will force boards to acknowledge these gaps,” Mr Stern added. “We look forward to working with business and government to make this new disclosure requirement work as effectively as possible."

The study of company annual reports found that Sir Martin Sorrell, chief executive of advertising giant WPP, was the highest paid boss for the second year, although his total pay fell from £70.4 million to £48.1 million.

He was followed by Arnold Donald of cruise company Carnival (£22 million), Rakesh Kapoor of consumer goods company Reckitt Benckiser (down from £23.1 million to £14.6 million), Pascal Soriot of pharmaceutical firm Astrazenica (£13.3 million) and Erik Engstrom of information firm Relx (£10.5 million).

Rebecca Long Bailey, shadow business secretary said: "It's a shocking sign of just how out of control inequality has grown that top CEOs have already been paid in three days what most people earn in an entire year.”

A Business Department spokesman said: "While most companies are proactive and thoughtful in implementing responsible business practices, the Government recognises concerns that bosses' pay can sometimes become disconnected from company performance.”

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