It's time for a maximum wage

New data from the High Pay Centre shows that the median FTSE 100 CEO now earns £4.58 million a year – 122 times more than the typical UK worker, with some, like Tesco’s CEO, paid 431 times more than their median employee. Pay at the top has reached record levels for the third year running, while most employees see little growth in their wages. This extreme pay gap is unfair, widely unpopular, and damaging to our economy and society. 

This proposal builds on our earlier pay ratios research and offers a simple, evidence-based step to tackle extreme inequality and promote a fairer economy.

The pay gap between CEOs and their employees has spiralled out of control. In 2023/24, 18% of FTSE 350 companies reported a CEO-to-median employee pay ratio of over 100:1, while 5% reported ratios over 200:1. Incredibly, some CEOs earned more than 600 times their workers.

But polling by the High Pay Centre and Survation shows that 63% of people believe CEOs should not earn more than 10 times their low- and mid-level employees. This reveals a stark gap between public expectations and reality.

CEO-to-worker pay ratios are published, but this has not reduced the gaps. High Pay Centre analysis shows pay ratios have remained largely unchanged over five years.

Research shows that the UK has some of the worst levels of income inequality in Europe, and that vast pay gaps damage morale, reduce trust, and lower workplace satisfaction. At a time when millions face rising costs and stagnant wages, this level of inequality is not just unfair — it’s socially and economically damaging.

A 10:1 ratio would incentivise higher wages at the bottom, rein in excessive rewards at the top, and help rebuild a sense of fairness.