Align Management Solutions

    Top executive pay now 117 times average worker’s wages

    Posted on August 21, 2019 by webmaster

    A report published by the CIPD and Britain’s High Pay Centre, examining executive pay across the FTSE 100, has revealed that the UK’s largest publicly listed companies paid their top leaders, known as ‘Key Management Personnel’, a total of at least £2.08 billion [€2.3bn] in 2018.

    It also highlighted that the average (median) FTSE 100 chief executive earns 117 times more than the average worker in Britain. In other words, it takes the average worker one year to earn what a typical FTSE 100 CEO earns in just three working days.


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    CIPD institute stated that: “Fairness is a key issue; if your organisation can’t afford to pay the Living Wage, can it justify a huge gap between its highest and lowest earners?”

    The CIPD warned that executive pay is often disconnected from the reward strategy of the wider organisation – and therefore HR teams. But there are steps that people professionals can take to think about this issue in a more holistic context and address pay inequality.

    Incoming pay ratio reporting requirements will push executive pay even further under the magnifying glass. HR teams will be under pressure to explain and justify any pay gaps, while taking steps to mitigate the negative impact this could have on culture and performance.