FTSE 100 CEO pay hits £20M while worker wages stall

Britain’s biggest company bosses are pulling in eye-watering pay packages — some potentially topping £28 million a year — while ordinary workers’ wages have barely kept up with inflation.

A survey by The Financial Mail on Sunday has revealed that three FTSE 100 chiefs could each earn more than £20 million this year if they hit their performance targets. Shell’s Wael Sawan could see his £13.8 million pay double. Rolls-Royce’s Tufan Erginbilgic could pocket up to £24.4 million, and Unilever’s Fernando Fernandez is also in line for the £20 million club.

For context, the typical FTSE 100 boss earned just over £5 million last year. The current highest-paid is AstraZeneca’s Pascal Soriot at £17.7 million.

What’s driving this? Companies say they’re competing for international talent in a global market. Most of their pay now comes as bonuses paid in shares, which multiply when stock markets are buoyant — as they have been since the pandemic. Shareholders have also become more accepting of these packages, with recent pay plans approved at the three firms mentioned.

The pay gap between UK and US executives is narrowing, but British bosses still earn less than half the average £12.2 million paid to S&P 500 chiefs. Experts suggest this partly reflects that US bosses often combine the roles of chief executive and chair, giving them more power and responsibility.

The contrast with ordinary worker pay is striking. While boardroom salaries have soared steadily since 2020, real wage growth for most Britons has flatlined. This widening gap raises questions about fairness and inequality — especially when many households are still struggling with the cost of living.

If you’re investing in pension funds or ISAs, you might own shares in these companies. It’s worth understanding how your money is being used and what executive pay policies look like in your portfolio. Check your fund documents or ask your pension provider about their stance on executive remuneration.