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Top bosses earn more in five days than average worker will make all year

05 Jan 2023 3 minute read
Money

Some five days into the new year, the average chief executive of the UK’s biggest companies will have earned as much as the average worker will make for the whole of 2023, new research suggests.

Data from the High Pay Centre indicated on Thursday that by 2pm, bosses of FTSE 100 companies will have earned an average of £33,000 so far this year.

This is the same as the median salary for a UK worker. The data is based on figures from last year, taken from the Office for National Statistics and the financial reports of publicly listed companies.

It comes as workers across the country have gone out on strikes, demanding better pay deals.

Over the last year, as the cost of living has soared, chief executives in the FTSE 100 saw their pay levels increase by 39%, more than offsetting the higher costs.

Meanwhile, the average worker has seen their pay rise by 6% over the same period.

It adds to decades of the rise in chief executives’ pay outstripping that of their workers.

Extraordinary

“In the worst economic circumstances that most people can remember, it is difficult to believe that a handful of top earners are still raking in such extraordinary amounts of money,” High Pay Centre director Luke Hildyard said.

“The UK economy really cannot afford for such a big share of the wealth that is created by all workers to be captured by such a tiny number of people at the top.

“To address declining living standards for the majority, we need measures to balance the distribution of incomes more evenly.”

Trades Union Congress general secretary Paul Nowak said: “Everyone deserves a fair day’s pay for a fair day’s work. But while working people are told not to ask for more, top pay is soaring.

“We need Government action to bring back some fairness on pay. Workers should have seats on executive pay committees to bring some common sense to top pay.

“And ministers must set out plans for fair pay for everyone, starting by agreeing to pay negotiations in the public sector.”

Gary Smith, general secretary of the GMB union, said: “A hard-up 999 call handler would have to work for 150 years to earn what a CEO (chief executive officer) boss trousers in just 12 months. It’s an utter disgrace.

“NHS workers and others are being forced onto the picket lines just to make ends meet while these fat cats get the cream.

“Instead of hiding behind imaginary independent pay bodies, ministers need to speak to NHS workers about what they want to talk about – pay.”


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Cris Cogydd
Cris Cogydd
28 days ago

dim byd yn newid

hdavies15
hdavies15
28 days ago

Distorted differentials have been an escalating problem in UK since the Thatcher era. Not helped by likes of Mandelson, in Blair’s time, being “relaxed” about people becoming filthy rich. Nod and a wink from Government gave added impetus to the fill yer boots culture now prevalent.

Steve Duggan
Steve Duggan
28 days ago

Our current political system favours massive earnings for the top brass as many politicians have their fingers in the pie. Everything is a self serving, I’m alright jack, screw the rest of you, culture. It’s a hugely growing trend since the 80s. Our only way out of it is through independence, then we can try and reset the clock.

Lib Dem YesCymru Infiltrator
Lib Dem YesCymru Infiltrator
28 days ago

Blaming the rich for all ills won’t lead to reforms helping poor; the rich will devise new methods to defend themselves. Instead show the rich it is in their interest to prevent revolution through reform.

Peter Cuthbert
Peter Cuthbert
27 days ago

In the book the 99% the author examines the various scenarios in which the distribution of wealth in the country could be made fairer. One is to ‘educate’ the rich to see that a more equitable society is better for everybody including themselves. The other is the ‘revolution’ option in which the very small number of very rich people quickly realise that they are few in number and could find their lives to be very short. Whilst I would agree that we need to educate the rich to see the folly of their greed, there has been no shortage of… Read more »

Owen williams
Owen williams
28 days ago

Wales needs to raise education standards. Education = prosperity.

Riki
Riki
28 days ago
Reply to  Owen williams

Well, that’s the first time I’ve agreed with you about anything! Education alone won’t work, but you also need to install a sense of Pride and Confidence in who they are and where they are from.

Owen williams
Owen williams
28 days ago
Reply to  Riki

Nonsense. I’m pretty sure if wales had the worlds best education system pride would naturally follow. As it is our coalition has deprioritised education and we are suffering as a result. I’ll vote for a party that puts education number 1.

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