The UK’s top executives, often labelled as fat cats, have already raked in huge sums in 2025, prompting questions about how their pay compares to the national average. FTSE 100 CEOs are reported to earn a median salary of £3.4 million annually, translating to roughly £9,315 per day. The average UK worker earns £33,000 per year, making the pay gap between CEOs and employees larger than ever. Recent figures suggest that within just a few days of January, many CEOs had already earned more than what most workers will see in an entire year.
Executive pay is typically composed of a base salary, bonuses tied to performance, and stock options. While base salaries are often in the hundreds of thousands, the real money comes from performance based incentives and shares. These bonuses are designed to reward CEOs for increasing shareholder value or hitting profit targets. For 2025, large bonuses have been tied to overcoming economic challenges, such as inflation and supply chain issues, as well as pushing digital transformation.
The public’s response to these earnings has been less than enthusiastic. As ordinary workers contend with rising living costs and stagnant wages, headlines about multimillion pound CEO bonuses can feel increasingly tone deaf. This has spurred greater scrutiny from shareholders, regulators, and even the government. Proposed legislation now aims to increase transparency by requiring companies to disclose the ratio between CEO and worker pay in their annual reports. The hope is that publicising these differences will pressure companies into adopting fairer pay practices.
Defenders of high CEO pay argue that leading a multinational corporation requires exceptional skill and decision making abilities, justifying the massive financial rewards. Competitive salaries are seen as essential to attract and retain the best talent in a global marketplace. People highlight cases where pay does not correlate with company performance, raising questions about whether these rewards are truly earned. Many argue that CEO compensation should be tied more closely to sustainable, long term results rather than short term profits.
While debates about fairness continue, the reality is that these pay structures are unlikely to change drastically anytime soon. Shareholders and boards remain committed to attracting top executives, even if that means offering packages that dwarf average salaries. The growing gap between executive and employee earnings does, however, raise important questions about inequality in the corporate world.
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