In 2023, CEOs of Europe’s largest companies earned an astonishing 110 times more than the average worker in the region. Euronews Business dives deeper into the compensation landscape, revealing the stark contrast between CEO salaries and the typical annual earnings across the EU.
Chief Executive Officers (CEOs) at the top 100 companies in Europe received a median total remuneration of €4.15 million, which includes salaries and bonuses. In comparison, the average salary of a worker in the EU stood at €37,863. Curious about how much top CEOs in Europe actually make? Let’s explore the figures.
According to Mercer’s “Board and CEO Remuneration in Europe” report for 2024, which examined the data of the largest organizations listed on the STOXX 600 as of January 1, 2024, the median CEO salary among the top 100 companies was reported at €1,571,000. Notably, the median maximum bonus opportunity was 200% of the salary, with actual median bonus payouts averaging 82% of that maximum, resulting in a total remuneration exceeding €4 million (€4,147,440).
For context, the median salary for the bottom quartile of CEOs was €1,328,000, while the upper quartile had a median salary of €1,896,000, indicating that some CEOs might be earning over €5 million in total compensation. For companies boasting a market capitalization of over €200 billion, the median salary alone reached €2 million.
Germany Leads in CEO Salaries
Among the top 100 companies, the UK (20 companies), France (20), and Germany (19) collectively represented nearly 59% of this group. In terms of median CEO salaries, Germany emerged at the top with €1,455,000, followed by Sweden at €1,360,000 and France at €1,275,000. In the UK and Italy, median salaries were lower, standing at €1,138,000 and €1,100,000, respectively.
Comparison of Median CEO Remuneration
Considering bonus payouts, the median remuneration in France was €4.22 million, compared to €2.8 million in the UK—showcasing significant disparities between countries and the types of companies included in the study.
Concerns About Wealth Disparity
The European Trade Union Confederation (ETUC) has raised alarms about the widening wealth gap, arguing that it threatens both economic stability and democratic integrity. ETUC General Secretary Esther Lynch highlighted the profound disconnect between CEO pay and worker compensation, advocating for a more equitable wage distribution. “This obscene CEO-worker pay gap demonstrates the urgent need to rebalance our economy,” Lynch asserted, emphasizing that fair wages could enhance competitiveness and address Europe’s labor shortages.
Furthermore, ETUC stressed that feelings of dissatisfaction regarding pay and working conditions can erode trust in democratic institutions, pointing to a broader societal impact beyond mere finance.
Salary Differences Across Europe
According to Eurostat, average full-time adjusted salaries in 2023 showcased significant variation, ranging from €13,503 in Bulgaria to an impressive €81,064 in Luxembourg, with the overall EU average set at €37,683. Among the largest economies of the EU, Germany recorded 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.
The glaring inequality in wealth distribution across Europe is deeply concerning—data indicates that the wealthiest 10% control an extraordinary 67% of the continent’s wealth, while the bottom half of the population possesses a mere 1.2% of ownership.
Photo credit & article inspired by: Euronews
