Male FTSE 100 executives earn on average 77 per cent more than their female counterparts, according to new research.
The study, conducted by the High Pay Centre and the Chartered Institute of Personnel and Development (CIPD), also found that it would take 160 years for a typical UK worker to earn the equivalent of a FTSE 100 executive.
Male FTSE 100 executives earned an average of £4.7 million in 2016, compared to an average of £2.6 million earned by their female counterparts.
The report notes the significant gender imbalance within the largest public companies. In 2016, the FTSE 100 boasted 94 male chief executives alongside just six females.
The number of female executives has increased by one, with the appointment of Emma Walmsley as CEO of GlaxoSmithKline. However, she was not included in the report as she only took up her position this year.
The report also notes that, “as a FTSE 100 CEO it is more likely that your name is David than you being female,” as there are currently eight chief executives with that name.
Speaking about the report, Peter Cheese, chief executive of CIPD said, “We have to hope that the reversal in rising executive pay is the beginning of a re-think on how CEOs are rewarded, rather than a short-term reaction to political pressure.”
“The fall in executive pay is a step in the right direction, but it’s still happening within an overall reward system where average wages in the UK have been flat.”
“Our analysis also shows a clear gender pay disparity at the top, with female CEOs receiving less than their male peers.”
“Quite rightly this issue of fairness is increasingly being called out and this needs to be addressed at all levels of businesses.”
Business Minister Margot James said, “It remains this government’s firm commitment to build an economy that works for everyone, making Britain one of the best places in the world to work, invest and do business.”
“We have been very clear that to achieve this ambition businesses should be run responsibly, including ensuring executive pay is properly aligned to performance as outlined in the Corporate Governance Reform green paper.”
“This report shows encouraging signs that the UK’s largest firms are already making progress in this area and our responsible business reforms, which we will publish shortly, will help to enhance the public’s trust and confidence in big business.”