⏱️ FTSE 100 CEO Earnings vs The Median Worker — Right Now
MEDIAN FTSE 100 CEO — EARNINGS THIS YEAR SO FAR
£0
CEO earnings since 1 Jan 2026 (£4.58m/year = £12,548/day = £523/hour = £8.72/second)
£0
Median worker earnings same period (£39,039/yr)
122×
CEO earns this many times more than the median worker
🏆 The "High Pay Hour" — When Did the CEO Overtake the Worker's Annual Salary?
By midday on Tuesday 6 January 2026, the median FTSE 100 CEO had already earned more than the median UK worker will earn in the entire year. That's less than 3 working days into the year. The worker must then work the remaining 362 days to match what the CEO earned before lunch on their third day back.
🚨 The numbers: Median FTSE 100 CEO pay 2024/25: £4.58m — a record high and the fourth successive year of increases. This is 122× the median UK full-time worker's salary of £37,430. Mean CEO pay rose 15.4% to £5.91m. Thirteen FTSE 100 companies paid their CEO over £10m — up from 10 the previous year. Total FTSE 100 executive pay bill: £1 billion for 217 roles.
FTSE 100 CEO Pay Ratio — Times the Median Worker (1998–2025)
CEO:Worker Pay Ratio (×)
If ratio had stayed at 1998 level
⚠️ In 1998, the typical FTSE 100 CEO earned approximately 47 times the median worker. By 2025 this had risen to 122 times. The ratio briefly fell during COVID-19 (2020) when CEO pay was cut, then rebounded sharply as executive pay was restored while worker wages lagged inflation.
CEO vs Median Worker Pay — Absolute (£) 2010–2025
Median FTSE 100 CEO Pay (£m, left)
Median Worker Annual Pay (£k, right)
🚨 Between 2010 and 2025, median FTSE 100 CEO pay rose from £3.2m to £4.58m — a 43% increase. Over the same period median worker pay rose from £26,100 to £37,430 — a 43% increase in nominal terms but only ~5% in real terms after inflation. The absolute gap has widened from £3.17m to £4.54m.
UK Public vs Private Sector Employment — 1999 to 2026 (millions)
Public Sector (m)
Private Sector (m)
Private workers per Public worker (right axis)
📋 The public sector workforce peaked at 6.3 million in 2009-10 at the height of Labour government expansion, then fell to 5.3 million by 2016 during the austerity period. It has since grown back to 6.1 million. Each public sector worker generates future pension liability — a growing headcount means growing long-term obligations. The private-to-public ratio has fallen from 4.8:1 in 2016 to 4.5:1 today, meaning fewer private sector taxpayers are supporting each public sector worker's future pension.
Labour Share of GDP — What Workers Get vs What Goes to Capital (1997–2023)
Labour Share of GDP % (wages & salaries)
Capital/Profit Share % (residual)
Labour productivity index (1997=100)
✅ The UK story is nuanced: Unlike the US, UK labour share has not dramatically fallen — it actually rose by nearly 6 percentage points from 1997 to 2023 according to the ONS. However this headline figure masks important problems.
⚠️ But wage growth has still lagged productivity: There is a 25 percentage point gap between median wage growth and productivity growth since 1981. The gains went to high earners, not typical workers. Mean wages rose with productivity — median wages did not.
🚨 The Kobeissi Letter finding: While UK aggregate labour share looks stable, this conceals a massive internal redistribution — from median and lower-paid workers toward the highest earners. Executive pay, financial sector bonuses and capital gains have all surged, while the bottom 60% of workers saw real wages stagnate or fall relative to GDP per head. The chart below shows how the fruits of productivity growth were distributed.
Productivity vs Pay — The Great Decoupling (1981–2025, Index 1981=100)
Labour Productivity (GDP per hour worked)
Mean Hourly Compensation (all workers)
Median Hourly Wage (typical worker)
Top 10% Average Wage
🚨 The key insight: Labour productivity and mean wages have broadly kept pace with each other — but median wages have fallen 25 percentage points behind productivity since 1981. The gains from productivity went almost entirely to the top of the income distribution. A worker at the median today earns only marginally more in real terms than in 2008, despite the economy being ~20% larger. This is the mathematical explanation for why the UK feels poorer for most people despite growing GDP.
Public Sector — Where Are the 6.1 Million Workers? (2025)
⚠️ Every one of these 6.1 million workers accrues future pension liability at ~29% of salary per year in employer contributions. NHS alone: 1.83m workers × avg £38k × 29% = £20bn/yr in new pension liability accruing. Growing the public sector headcount without reforming pensions directly increases the long-term unfunded liability shown on our Off-Balance-Sheet Debt page.
The Four Key Problems — What the Data Shows
1. Executive Pay Has Exploded
FTSE 100 CEO pay is now 122× the median worker — up from 47× in 1998. This isn't primarily about productivity or value creation — it reflects the power of remuneration committees, long-term incentive plans (LTIPs), and a lack of effective corporate governance constraints on pay at the top.
2. Productivity Gains Went to the Top
Since 1981, labour productivity rose by ~120%. Mean wages kept pace — but median wages fell 25 percentage points behind. The gains were captured by the top 20% of earners, particularly the top 1%. A typical worker today is barely better off in real terms than in 2008 despite 17 years of economic growth.
3. Public Sector Growth Adds Pension Liability
The public sector workforce has grown back to 6.1m after austerity cuts. Every additional worker adds to the £1.4tn unfunded pension liability. The ratio of private-to-public workers (who fund public pensions through taxes) has narrowed — meaning fewer taxpayers supporting each pensioner.
4. Zero Hour Contracts & Gig Economy
Self-employment rose from 11.8% of the workforce in 1981 to 15.7% in 2019. The self-employed receive no employer pension contributions, no statutory sick pay, and often earn less than equivalent employees. This structural shift weakens both workers' financial security and future pension provision.