According to a report from the High Pay Centre, bosses of the largest companies in Britain will have earned more by lunchtime on Thursday in 2024 than the typical worker would earn
throughout the entire year.
By 13:00 GMT, the pay of FTSE 100 chiefs will have surpassed the annual median wage for full-time workers, which stands at £34,963, as stated by the High Pay Centre.
Factoring in pensions, the average compensation for top bosses amounts to £3.81 million per year, averaging £1,170 per hour, a stark comparison to the 109 times the average full-time worker's pay.
The study also reveals that top City lawyers will need until the start of the following week to exceed the median worker's annual pay.
Executives within the bigger FTSE 350 companies have a median pay of £1.32 million, requiring them to work until 10th January to surpass the annual pay of the median UK worker, according to the High Pay Centre.
Leading bankers, on the other hand, surpass the average worker's pay by 17th January.
These calculations are based on disclosed salaries found in companies' annual reports.
The Trades Union Congress (TUC) expressed concern over the significant pay inequality, indicating that the UK is facing extreme disparities in pay.
While the CBI business trade body, representing some of the listed companies, declined to comment when asked for a response.
Luke Hildyard, Director of the High Pay Centre, challenged claims that top earners in Britain were being underpaid. He highlighted that such misconceptions contribute to widespread inequality and stagnating living standards.
Throughout 2023, key figures in finance and business advocated for higher pay for chief executives in the UK, pointing to the higher compensations in countries like the US, where the median pay for S&P 500 bosses exceeded $14 million in 2022.
Money management giant Legal and General Investment Management made adjustments to its executive pay guidelines in December, allowing the firms it invests in to offer more generous incentive payments.
The head of the London Stock Exchange also raised concerns about low chief executive pay levels, arguing that they pose a risk to the UK economy, especially as some UK firms opt to list in the US.
The High Pay Centre's calculations were based on the assumption that chief executives work 62.5 hours a week, totaling 12.5 hours a day, excluding weekends and bank holidays in England and Wales, thereby arriving at an hourly pay of £1,171. Photo by gren, Wikimedia commons.