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Former Lloyds TSB boss Sir Victor Blank told ITV News the 19p increase to the minimum wage is a "small step but very positive."
He said: "[It's] terrific that it's gone up and so it should. One of the biggest problems I think we have is the growing division between the levels of pay of senior executives and the average level of pay.
"If you look at the figures over the last 15 years, they've just grown apart massively and I think it's quite worrisome and I think it's quite wrong."
The minimum wage will rise by 19p to £6.50 per hour from 1 October 2014, the government has announced.
Business Secretary Vince Cable said: “The recommendations I have accepted today mean that low-paid workers will enjoy the biggest cash increase in their take home pay since 2008.
"This will benefit over one million workers on national minimum wage and marks the start of a welcome new phase in minimum wage policy."
The minimum wage for those aged between 18-20 years old will increase to £5.13 per hour, while those aged either 16 or 17 will receive £3.79.