Record-High CEO Pay of FTSE 100 Widens Income Gap in the UK – AstraZeneca CEO Tops the List

The salaries of CEOs at the UK’s largest companies have reached unprecedented levels, with some earning as much as 120 times the average full-time worker’s wage. According to a report by the High Pay Centre, the median pay for Chief Executives of FTSE 100 companies increased to $5.35 million in 2023, up from $5.23 million in 2022. This marks the highest level of CEO pay on record, even though the rate of increase has slowed compared to the post-pandemic years.

Pascal Soriot, the CEO of AstraZeneca, topped the list as the highest-paid executive for the second consecutive year, receiving $21.51 million in 2023, an increase from approximately $19.5 million the previous year. AstraZeneca’s plans to further raise Soriot’s pay to around $23.9 million sparked a shareholder revolt earlier this year. The company defended the decision, arguing that competitive compensation is crucial to retaining top talent and positioning the UK as a key player in the life sciences sector.

The High Pay Centre’s analysis also revealed that the median pay ratio between FTSE 100 CEOs and full-time workers stands at 120:1, slightly lower than last year’s 124:1 but still notably higher than the 108:1 ratio recorded in 2021.

Luke Hildyard, Director of the High Pay Centre, pointed out that the widening gap between executive pay and the earnings of ordinary workers is fueled by a variety of factors, including diminished trade union influence, low worker participation in corporate decision-making, and a business culture that prioritizes investor interests over those of employees, customers, and other stakeholders. While these trends have benefited top executives, Hildyard questioned whether they align with the broader interests of the UK as a whole.

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