The High Pay Centre, a thinktank focused on fair pay, released its latest analysis showing that chief executive officer wages in the UK rose by an average of 12% in 2025, pushing the median pay for FTSE 100 CEOs to £4.5 million. The report, published on July 10, 2026, also highlights a concerning trend: diversity in the boardroom is stagnating or declining.
CEO Pay Surges Amid Cost-of-Living Crisis
According to the High Pay Centre, the median total remuneration for FTSE 100 CEOs reached £4.5 million in 2025, up from £4.0 million the previous year. This 12.5% increase far outpaces the average worker's pay rise of just 3% over the same period. The highest-paid CEO took home over £20 million, underscoring the widening gap between executives and employees.
The thinktank's director, Luke Hildyard, commented: "These figures show that CEO pay continues to spiral upwards, while ordinary workers struggle with the cost of living. The lack of progress on diversity is equally troubling."
Diversity Stalls at the Top
Despite years of pledges to improve representation, the report found that women now hold just 12% of CEO roles in the FTSE 100, unchanged from 2024. Ethnic minority representation remains at a mere 3%, with no improvement. The number of CEOs from working-class backgrounds also fell, dropping to 6% from 8%.
Hildyard added: "The data suggests that high pay is not linked to merit or diversity but rather to a culture of rewarding insiders. Companies need to take concrete action to open up opportunities."
Impact on Public Trust and Policy
The High Pay Centre warns that such disparities erode public trust in business. The thinktank is calling for stronger corporate governance reforms, including mandatory pay ratio reporting and binding votes on executive pay. It also urges the government to introduce transparency measures on diversity hiring.
The report follows a year of shareholder activism, with several companies facing backlash over excessive pay packages. In 2025, average CEO-to-worker pay ratios in the FTSE 100 stood at 120:1, up from 110:1 in 2024.
Reactions from Business and Labour Groups
Business groups argue that high pay is necessary to attract global talent. However, unions and campaigners say the figures reveal a broken system. The Trades Union Congress (TUC) called the pay rises "indefensible" and urged the government to cap bonuses.
The High Pay Centre's analysis is based on annual reports from all FTSE 100 companies. It notes that while some firms have improved diversity, the overall trend is one of stagnation.
