Will CEO pay ratio reporting change Fat Cat Friday timeline?

04 January 2019

The average FTSE 100 CEO only needs to work until 1pm today (Friday 4 January 2019) to earn the same amount as the average full-time worker in the UK.

Chief executives of leading UK companies are paid 133 times more than the average worker, new research for "Fat Cat Friday" reveals.

According to the latest CIPD/High Pay Centre analysis, the average FTSE 100 CEO is paid £1,020 per hour and £3.926 million a year, an increase of 11% on the previous year.

The average (median) full-time worker in the UK earns a gross annual salary of £29,574. “Fat Cat” Friday recognises that in 2019 the average FTSE 100 CEO, on an average (median) pay packet of £3.9 million, only needs to work until 1pm today (Friday 4 January 2019) to earn the same amount.

 

To help combat this pay gap, The Companies (Miscellaneous Reporting) Regulations 2018 came into force on 1 January 2019 and will require listed companies with more than 250 employees to report their CEO/worker ratios along with other employee engagement information.

The actual reporting of CEO pay ratios is expected to start in 2020.

 

The CIPP policy team has produced a  short webcast which provides an overview of the CEO pay ratio reporting requirements.