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High Pay Centre/CIPD executive pay survey 2018

New research from the High Pay Centre and the CIPD finds that median pay for a FTSE 100 CEO leapt 11% in 2017

The annual High Pay Centre/CIPD assessment of FTSE 100 CEO pay packages has found that CEO median pay rose by 11% between 2016 and 2017, despite prominent criticism from the investor community and the Government over excessive CEO pay awards in the past year.

FTSE 100 CEO median pay now stands at £3.93 million per year, an increase on £3.53 million in 2016.

The analysis is affected by two very large payouts for the CEOs at Persimmon and Melrose Industries (£47.1 million and £42.8 million respectively). As a result of this, this year’s CIPD/High Pay Centre report leads with the median, rather than the mean figure. Using the median measure of CEO remuneration reduces the impact of these two outliers, but it still shows an increase in earnings of 11%, compared to the 2% rise in median pay enjoyed by full-time workers over this period.

However, if the mean measure is used, then it shows that CEO mean pay across all FTSE 100 companies has increased by 23% over the same period, from £4.58 million in 2016 to £5.66 million in 2017. Excluding Persimmon and Melrose Industries from the analysis would see the 2017 mean CEO single figure fall from £5.66 million to £4.85 million. However, this is still higher than last year’s overall mean figure of £4.58 million by 6%, showing this continued underlying trend of rising executive pay.

Further highlights from this year’s CIPD and High Pay Centre analysis include:

To achieve fairer and more ethical approaches to pay and reward, the report makes the following recommendations:

 

Download report

Posted on 15 August 2018

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