Study finds no link between soaring UK CEO pay and company performance or productivity
By
Helena Vieira
A baker's-dozen of insight crammed into one ring.
Summary
British CEOs earn 113 times the median pay of their workers in 2025, up from 20 times in the 1970s. Despite this dramatic rise, research shows no correlation between high CEO pay and improved company performance or UK productivity. The article argues that the surge in executive compensation, driven by changes in corporate governance and compensation practices since the 1980s, has not delivered the promised benefits to companies or the broader economy.
Key quotes
· 3 pulledIn 2025, it is estimated that the pay of Britain's leading CEOs will be 113 times the median pay of their workers—up from 20 times in the 1970s.
Michael Aldous and John D Turner write that this extraordinary rise wouldn't be so bad if high CEO pay led to better performance. But it doesn't.
Nor does it help improve the UK's productivity problem.
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