FTSE 100 Bosses' Pay Surpasses £500 Million, Average Pay at £5.5 Million

AstraZeneca's Pascal Soriot has slipped to third place in the FTSE 100's highest-paid CEO list, replaced by Melrose's Peter Dilnot and Simon Peckham, who shared £100 million in private equity-style pay packets. The total paid to FTSE 100 bosses has surpassed £500 million for the first time, with top executives netting an average of £5.5 million each, up 11% on the previous year. Melrose overtook Tesco as the firm with the largest pay gap between its boss and a typical worker.

In a significant shift in executive compensation, the total paid to FTSE 100 bosses surpassed £500 million for the first time in 2025, marking an 11% increase from the previous year. This surge in CEO pay was driven by a variety of factors, including strong corporate performance and increased compensation packages for top executives [3].

AstraZeneca's Pascal Soriot, once a prominent figure in the FTSE 100's highest-paid CEO list, has slipped to third place. He was overtaken by Melrose's Peter Dilnot and Simon Peckham, who shared a £100 million private equity-style pay packet [3]. This move highlights the growing trend of linking executive compensation to performance and shareholder value, as seen in Melrose's recent earnings and strategic decisions [3].

The FTSE 100's average CEO pay has reached £5.5 million, indicating a significant rise in executive remuneration. This increase is reflective of the broader trend of higher executive compensation in response to strong financial performance and market conditions [3]. The shift in CEO rankings and pay structures also underscores the evolving landscape of corporate governance and executive compensation practices in the UK.

Melrose Industries has emerged as the firm with the largest pay gap between its CEO and a typical worker. This pay disparity reflects the company's recent performance and the strategic decisions made by its leadership, including the acquisition of private equity assets and the focus on shareholder returns [3].

The changes in CEO compensation and rankings are part of a broader trend in the financial sector, driven by shifting market conditions and institutional investor strategies. For instance, British Columbia Investment Management Corporation (BCI) has recently sold $2 billion in private equity assets to boost liquidity, reflecting a broader trend of risk management and diversification among institutional investors [2].

In conclusion, the FTSE 100's CEO pay surge and the shift in rankings highlight the evolving landscape of executive compensation and corporate governance. As companies continue to navigate changing market conditions and investor expectations, the focus on performance-based compensation and shareholder value will likely remain a key driver of executive remuneration.

References:
[1] https://www.economist.com/britain/2025/08/08/pascal-soriot-the-pharma-titan-tiring-of-britain
[2] https://www.ainvest.com/news/bci-sells-2-billion-private-equity-assets-boost-liquidity-2508/
[3] https://www.investments.halifax.co.uk/research-centre/news-centre/article/?id=20542248&type=bsm