This represents a 2.2% increase from the previous year, a slower pace compared to the post-pandemic surge. While the median CEO now earns 120 times the median UK full-time worker, down slightly from 124 times in 2022, but still higher than 108 times in 2021.

Mean FTSE 100 pay grew from £4.42m to £4.98m – a 12.2% and over £500k increase.

The ten FTSE 100 companies with the highest CEO pay were as follows:

Other key findings include:

• Mean FTSE 100 pay grew from £4.42m to £4.98m – a 12.2% and over £500k increase
• FTSE 100 firms spent £755m on the pay of 222 executives.
• The number of FTSE 100 companies awarding eight-figure pay packages of over £10m more than doubled, from four firms in 2022 to nine in 2023
• 81% of FTSE 100 companies paid their CEO a long term incentive payment (LTIP), an increase on the 74% who did in 2022. The mean LTIP payment increased from £1,791k in 2022 to £2,058k in 2023.
• In total, 12 female CEOs served for at least part of the year, with eight of those remaining at the end of the financial year. Just six companies had female leadership for the entire financial year, with their median pay amounting to £2.69m.
• For companies who had a male CEO for the whole financial year, the median pay was £4.19m – the same as the overall median pay for the FTSE 100.

The report argues that excessive spending on top earners by leading firms makes it harder to fund pay increases for the wider UK workforce. Reforms to regulations affecting corporate pay-setting process that the government should consider include:

• Requirements for companies to include a minimum of two elected workforce representatives on the remuneration committees that set pay;
• Requirements for companies to provide more detailed disclosure of pay for top earners beyond the executives, and low earners including indirectly employed workers, enabling more informed pay negotiations at individual companies and a clearer debate about pay inequality more generally;
• Stronger trade union rights, including reasonable access to workplaces and a ban on efforts by management to manipulate votes on union recognition.