FTSE 100 chiefs’ pay up 11pc as workers receive 2pc rises

FTSE 100 bosses got an 11pc boost to their pay packets on average last year, despite a backlash from investors and politicians over large payouts.

Median pay for chief executives in the blue chip index hit £3.93m in 2017, up from £3.53m the previous year, according to the latest research from professional body CIPD. Among the bosses receiving bumper pay packages were Jeff Fairburn, Persimmon chief, and Simon Peckham, the Melrose boss, who got £47.1m and £42.8m respectively.

A flurry of firms were hit by investor revolts over executive pay at their annual general meetings this year, including Melrose, Royal Mail and Unilever. Persimmon’s Mr Fairburn was originally in line for a £110m payout under a long-term incentive scheme, but was forced to give up some of this after a backlash.

With the Persimmon and Melrose payouts factored in, the mean average increase in pay for FTSE 100 bosses was up almost a quarter (23pc) to £5.66m, up from £4.58m. When they were excluded from the analysis, the mean pay rise was 6pc, at £4.85m.

The 11pc jump in median pay for chief executives compared to a 2pc rise for full-time workers.

The CIPD analysis also found a sizeable gender pay gap. While women make up 7pc of FTSE 100 bosses, they earn just 3.5pc of total pay.

Peter Cheese, chief executive of the CIPD, said: “Despite increased investor activism and the planned introduction of pay ratio reporting, the evidence suggests that very little is changing.”

Rachel Reeves, chairman of the business select committee, which is conducting an inquiry into executive pay, said: “When CEOS are happily banking ever larger bonuses while average worker pay is squeezed, then something is going very wrong.”