Figures show Chief executives earn ‘183 times more than workers’18 August 2015
Chief executives in leading companies are said to earn on average 183 times more than full-time workers, with an average salary of almost £5 million a year, a study has revealed.
According to a report by the High Pay Centre, a think tank which monitors income distribution, top FTSE 100 bosses earned on average £4.964m in 2014.This amount compares to £27,195, the median pay for a full-time employee in 2014, according to official figures.
Deborah Hargreaves, director of the High Pay Centre said that the executive pay packages went “far beyond what is sensible or necessary to reward and to inspire top executives.”
What’s more is whist chief executives continued to earn more; the pay gap did not increase dramatically between 2014 and 2013, when chief executives earned 182 times the average of full-time workers pay. The High Pay Centre also point out that the number is much bigger than in 2010, when CEOs earned 160 times more.
In response to this, Ms Hargreaves added that even as the reforms have helped to develop a better understanding of the pay given to executives, further action is needed. She informed the BBC’s Today programme: “We’ve seen executive salaries pulling right away from the rest of society, creating this small elite of people that are just paid astronomically.”
The High Pay Centre suggest that companies should publish their own figures on the difference in pay between executives and their workers as well as, a new structure where employees are have a say in pay negotiations.
The Trades Union Congress (TUC) responded to the think tank’s study similarly saying that inequality had now reached “stratospheric levels”.