Top CEO salary rises far outstripping their employees

Employee morale could be damaged by the ever-growing paychecks of top bosses, as bosses’ salaries continue to grow at a much faster rate than their employees’ pay.

2017 data from stewardship service Minerva Analytics revealed that the CEOs of the UK’s biggest listed companies were on average awarded an 11% pay increase. However, their workers received a raise of just two per cent on average over the same period.

From our magazine

Ops & tech | How accurate, effective payroll benefits more than just the employee receiving it

This means median CEO remuneration has reached £3.93million – but the average salary in the UK is £27,271, according to the ONS.

To keep tabs on the growing pay gap, new government legislation will demand large listed companies to publish and justify pay gaps between CEOs and their employees in the form of a ratio. It will come into effect in 2020.