The average FTSE 100 CEO will have already ‘earned’ more than the UK average salary

The median FTSE 100 CEO’s earnings for 2026 will surpass the median annual salary for a full-time worker in the UK by around midday on Tuesday 6 January. This is according to calculations by the High Pay Centre think tank.

The High Pay Centre based its calculations on its analysis of the most recent CEO pay disclosures published in companies’ annual reports. It combined this with government statistics showing pay levels across the UK economy.

As with last year, the executive pay data suggests that FTSE 100 CEOs will have to work less than three days of 2026 to surpass the annual pay of the median worker.

The stats assume that work began on Friday 2 January. They factor in a 12.5 hour working day for CEOs. This equates to hourly pay of £1,353.23 per hour on the basis of £4.40m annual pay. They use the median figure, which half are earning more than and half less than.

FTSE 100 CEOs – raking it in

Median FTSE 100 CEO pay (excluding pension) currently stands at £4.40m. This is 113 times the median full time worker’s pay of £39,039. The ratio between FTSE 100 CEOs and workers is the same as last year.

By comparison, it would take:
partners at Magic Circle law firms until 8 January,
material risk takers at FTSE 100 banks until 16 January,
partners at Big Four accountancy firms until 20 January,
and those in the top 1% on incomes until 19 March
to earn the equivalent of a median UK worker’s annual salary.

In December, the Employment Rights Act received Royal assent. The new law includes measures promising to give trade unions reasonable access to workplaces to speak to workers and requiring employers to inform new employees of their right to join a union. The decline in trade union membership is widely recognised to have been a key factor in rising CEO to worker pay gaps and widening inequality that has occurred in the UK and across other Western countries since the 1980s.

The High Pay Centre’s Charter for Fair Pay, published just over a year ago called for effective implementation of the Employment Rights Bill. It also demanded further measures giving workers more of a voice in the running of companies.

High Pay Centre Interim Director, Andrew Speke said:

The figures out today once again emphasise the huge gulf in how the work of most people is valued compared to a small number of feted executives. The idea that executives, as a class, are individually contributing over 100 times more in value than the workers they rely on is simply not credible.

The government’s Employment Rights Bill could have a positive impact on reducing the inequality of pay and worker voice in the UK economy, but it must be accompanied by bolder corporate governance reform, including democratic worker representation on all major company boards.

We are also calling for companies that pay excessive sums to their highest earners to be taxed more, with the proceeds invested in education, helping to tackle deep-rooted inequalities and improve social mobility.

Featured image via the Canary