The average pay of FTSE100 CEOs rose by 16% from £3.38 million in 2021 to £3.91 million in 2022, according to the latest figures from thinktank the High Pay Centre. In the same week this was reported, UK political figure Nigel Farage called outgoing NatWest boss Alison Rose’s £2.4 million payout “a sick joke”. She recently resigned for leaking private financial information about him to the BBC.
On the other hand, senior NHS doctors are embarking on a second round of strikes in response to recent pay erosion and a “final” pay offer of 6% from the government. In the last two months, teachers have agreed to settle for 6.5%. Train drivers, nurses and university lecturers are also among a growing list of employees for whom proposed pay increases are failing to beat inflation.
It’s difficult to reconcile these contrasting rates of pay progression, which just seem morally wrong to many people. But understanding some of the nuances surrounding CEO pay can help draw conclusions about what is and is not appropriate when it comes to pay – even if only to calibrate outrage levels.
