Chartered Institute of Personnel and Development (CIPD) has released figures for its High Pay Day, based on data and analysis compiled with the High Pay Centre, showing that FTSE 100 CEOs only need to work until just before 17.00 on Monday 6 January 2020 in order to make the same amount of money that the typical full-time employee does in the entire year.

CEOs can earn 117 times the annual pay of the average worker, with the average FTSE 100 CEO earning £3.46m. The average (as defined by the median) full-time worker took home an annual salary of £29,559 in 2018 (the latest available figures).

High pay might be a key issue in 2020, as this is the first year that publicly listed firms with more than 250 UK employees must disclose the ratio between CEO pay and the pay of their average worker. Under changes to the Companies Act (2006), firms must now provide their CEO pay ratio figures and a supporting narrative to explain the reasons for their executive pay ratios. The first round of reporting will be seen in annual reports published in 2020.

However, the CIPD and High Pay Centre are calling on businesses not to treat the new reporting requirements on executive pay as a ‘tick-box’ exercise and to use it as an opportunity to fully explain CEO pay levels. They also highlight the need for firms to provide a clear rationale for why CEOs are paid what they are and what is being done to address the issue of fair pay in their organisation more broadly.

Andrew Ninian, director of stewardship and corporate governance at the Investment Association said: “Despite some good progress in the last year on executive pensions, shareholders want companies to ensure that their pay policies are justifiable. 2020 is an important year, which will see the majority of companies seek shareholder approval for their remuneration policies for the next three years, and they will want to see that CEO pay is proportionate and

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