City authorities received their full year's average wage within the initial three days of the year 2025.
Headline: FTSE 100 Executives Earn More in Three Days than Workers Make in a Year: A Breakdown of the Eye-Popping Pay Gap
Yep, here we go again - another year, another jaw-dropping disparity in salaries between Britain's biggest company execs and their employees. In fact, 2025's first three days brought in more cash for top dogs than the average employee will see in the entire year. Talk about a 'fat cat' syndrome!
This fresh wave of worry revolves around calls to offer even bigger bonuses to attract top talent to run these leading companies listed on the London stock market. It's like trying to lure a celebrity with a sixth yacht!
The Fat Cat Files of The Mail on Sunday reveal that the typical FTSE 100 CEO raked in a cool £4.7 million in 2023 - a whopping 125 times that of the average worker's annual wage of £37,430. But that's just the tip of the iceberg - some companies boast even more extreme pay gaps.
Take Tesco, for instance. Their CEO, Ken Murphy, cashed in on nearly £10 million, equating to a staggering 431 times his average worker's salary of £23,010. That's enough to make you question how much change the average Tesco worker has left in their pockets at year's end. What’s even more mind-boggling is that Murphy made more on New Year's Day itself than his 50,000+ employees will bring home for the entirety of 2025.
Other retail giants like Sainsbury's, Next, and B&Q-owner Kingfisher also make the list, but some argue these CEOs aren't even being paid enough. Firms like plumbing giant Ferguson and Tarmac-owner CRH have jumped ship to Wall Street, where sky-high executive pay is seen as more tolerable. And why not? If you can't beat 'em, join 'em!
There's no shortage of voices chattering about this issue - even London Stock Exchange chief executive Julia Hoggett has voiced concerns about a 'lack of a level playing field' causing an exodus of companies from the City to New York and beyond. Plus, billionaire financier Lord Michael Spencer argues that the top bosses should be paid like top-rate footballers without facing any backlash. Pass the popcorn!
But don't get too comfortable just yet. Britain has made attempts to curb this growing pay disparity - Theresa May really did her best to tame 'fat cat' pay back in 2017 by forcing companies to reveal more information about their pay ratios. However, efforts to disclose more information have yet to significantly reduce the existing wage gaps, especially since real wages have remained stagnant since the financial crisis of 2008-9.
So there you have it - another year, another juicy pay gap. As workers grapple with squeezing their own paychecks, it's tough not to feel just a tad ripped off. And although the situation may seem frustrating, remember, it's just another reason to go after those juicy raises at work!
Footnotes
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- Despite concerns about attracting top talent, FTSE 100 executives still earn incredible amounts compared to their employees, with CEOs like Ken Murphy at Tesco making nearly 431 times more than the average worker, a figure that highlights the persisting wage gap.
- Even though efforts have been made to disclose more information about pay ratios, such as by former Prime Minister Theresa May in 2017, the wage gaps have yet to significantly decrease, especially since real wages have been stagnant since the 2008-9 financial crisis.
- The London Stock Exchange chief executive, Julia Hoggett, has expressed her concerns about the lack of a level playing field, which may cause companies to leave the City of London and relocate to New York and other areas where executive pay is perceived as more tolerable.
- Billionaire financier Lord Michael Spencer argues that top bosses should be paid like top-rate footballers without facing any backlash, adding another layer to the ongoing debate about executive pay in the finance and business sectors.
- Thepay disparity between executives and workers, particularly in the retail sector, has been in the spotlight once again: for example, some retail giants like Sainsbury's, Next, and B&Q-owner Kingfisher make the list of firms with extensive wage gaps, but some argue these CEOs aren't even being paid enough, leading other firms like Ferguson and Tarmac-owner CRH to consider moving to Wall Street.
