Full-time workers lose out as CEOs take huge chunk
THE AVERAGE £5 million salary of a top company boss is a staggering 183 times higher than that of full-time workers, a new study revealed yesterday.
The typical pay for high-ranking chief executive officers (CEOs) jumped from £4.1m to £4.9m in just four years since 2010, research of FTSE 100 companies by think tank the High Pay Centre found.
The top 10 highest-paid CEOs collectively earned over £156m last year, which prompted campaigners to call for a curbing of disproportionately high senior wages.
High Pay Centre director Deborah Hargreaves said: “Pay packages of this size go far beyond what is sensible or necessary to reward and inspire top executives.
“It’s more likely that corporate governance structures in the UK are riddled with glaring weaknesses and conflicts of interest.”
Companies need to rebalance pay grades in order to fairly reward those who do most of the work, TUC general secretary Frances O’Grady said.
Unite general secretary Len McCluskey said that CEOs should put money into creating more jobs and making pay rises for existing employees “instead of greedily hosing themselves down with torrents of cash.”
And non-executive workers’ pay is under close scrutiny as only a quarter of the FTSE 100 firms detailed in the report have been found to be paying the living wage.
Ordinary employees should be included in pay committees to add “some common sense” to a predominately “closed shop for an elite who are only interested in looking after their own,” Ms O’Grady added.
She continued: “With top bosses now earning 183 times more than the average full-time worker, inequality is reaching stratospheric levels.”
Regulations that were amended in 2013 to stipulate that British-listed companies have to publish pay details of their lead executives appear to have had virtually no effect in curbing excessive executive pay, the report states.
“It seems highly unlikely that the gap between CEOs and other workers will close in the foreseeable future,” it said.
The reforms, however, increased shareholders’ power to hold companies to account over wages but they have shown “little interest” in doing so, said the High Pay Centre.