CEOs earn 110 times more than the average worker in Europe. Euronews Business takes a closer look at how much CEOs earn, comparing their pay to average annual salaries across the EU.
Chief executive officers (CEOs) of Europe’s leading companies earned 110 times more than the typical EU worker in 2023. The median CEO remuneration at Europe’s top 100 companies, including salaries and bonuses, was €4.15m, compared to the average EU worker’s salary of €37,863.
So how much do CEOs of top European companies earn annually? And what are the salaries of top CEOs in Europe?
Mercer’s “Board and CEO Remuneration in Europe” in 2024 report reveals the salaries, bonuses, practices and trends. The report is based on data from the 100 largest organisations listed on the STOXX 600 as of 1 January 2024. The term ‘Europe’ in this context refers to companies operating in the following markets: Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK.
According to the report, the median CEO salary among the top 100 companies was €1,571,000. The median maximum bonus opportunity was 200% of the salary, with actual median bonus payouts reaching 82% of that maximum. This brought total remuneration to more than €4m (€4,147,440).
For the lower quartile, the median salary was €1,328,000 while, for the upper quartile, it reached €1,896,000. This suggests that some CEOs may have earned total remuneration exceeding €5m.
For companies with a market capitalisation of more than €200bn, the median salary alone was €2m.
Germany tops France and UK in median CEO salaries
Among the top 100 companies, the UK (20), France (20), and Germany (19) together accounted for 59 companies – nearly three out of five. Among Europe’s other top five economies, Italy had eight companies, and Spain had four. Switzerland ranked fourth overall, with 14 companies included.
The report closely examines five countries, with Germany reporting the highest median CEO salary at €1,455,000. Sweden followed at €1,360,000, and France at €1,275,000. The median CEO salary was €1,138,000 in the UK and €1,100,000 in Italy.
Median CEO remuneration: €4.2m in France vs €2.8m in the UK
Taking bonus pay-out rates into account, the median remuneration should be €4.22m in France while this was €2.8m in the UK. These figures reflect the companies included in the report and may vary depending on the sample size and composition.
ETUC: Vast wealth gap damages economy and democracy
The European Trade Union Confederation (ETUC) warned that the vast wealth gap is harming both the economy and democracy.
Comparing median CEO remunerations with average salaries in Europe, ETUC General Secretary Esther Lynch stated: “The obscene CEO-worker pay gap shows we urgently need to rebalance the economy by increasing the number of working people benefiting from collectively bargained wages.” She added, “Fairer pay would boost competitiveness by helping to end Europe’s labour shortages.”
The ETUC statement also noted that research indicates that people dissatisfied with their pay and working conditions, and who feel they have little influence over their jobs, are more likely to lose trust in democratic institutions.
How do average salaries differ across Europe?
According to Eurostat, the average full-time adjusted salary per employee in 2023 ranged from €13,503 in Bulgaria to €81,064 in Luxembourg, with the EU average standing at €37,683.
Among the EU’s top four economies, workers in Germany earned the highest average salary at €50,988, followed by France at €42,662. Italy and Spain were closer to the EU average, with salaries of €32,749 and €32,587, respectively.
Wealth inequality in Europe is strikingly evident. The wealthiest 10% of the population control an astonishing 67% of the continent’s wealth, while the bottom 50% of adults own a mere 1.2%.
