If increases in the national minimum wage had kept pace with a chief executive it would be £12.74 an hour compared with £7.50 now for those 25 years and older. For a worker aged over 25 on 40 hours per week this would equate to £26,000 a year compared with the £14,664 they are currently paid. £5.24 an hour higher if it had risen at the same rate as a FTSE 100 chief executive’s pay over the last two decades.
Analysis published last week by the Vlerick Business School, based on 2016 data, found that chief executives of FTSE 100 companies receive on average 94 times more than the average employee. The average FTSE 100 company chief saw an 11% rise in their median total pay between 2015 and 2016.
Calculations by the High Pay Centre confirm that the average FTSE 100 chief is now paid £4.35m a year – compared with £1.23m when the national minimum wage came in – an increase of 354%.
Every year the High Pay Centre highlights “fat cat day” when the average FTSE 100 chief executive will have already been paid the same as the average UK worker earns in a whole year. In 2018 the day falls on 4 January.