The average pay of a chief executive in a FTSE 100 company reached almost £5 million in 2014, around 183 times the pay of an average UK worker, according to High Pay Centre analysis. The Centre analyses data published in company reports under the reporting requirements introduced by the 2013 Enterprise and Regulatory Reform Act, finding that the 10 highest-paid CEOs alone received over £156 million between them.
In total, only 6.4% of FTSE 100 executive pay awards were voted down by shareholders in 2014.
High Pay Centre director Deborah Hargreaves said:
‘Pay packages of this size go far beyond what is sensible or necessary to reward and inspire top executives. It’s more likely that corporate governance structures in the UK are riddled with glaring weaknesses and conflicts of interest. The coalition government introduced some welcome reforms in 2013 that have at least enabled us to get a better understanding of the executive pay racket. However, it’s clear that these reforms didn’t do nearly enough to start building a pay culture where everybody is rewarded fairly and proportionally for the work that they do.’