Pay for Britain’s top bosses rises 23%

LONDON: Pay packages for the bosses of Britain’s 100 biggest listed firms rose 23 percent over the past year, fuelled by payouts for the CEOs of house builder Persimmon and industrial firm Melrose Industries, a survey showed yesterday.

Excessive corporate pay has attracted public anger since the financial crisis and Prime Minister Theresa May has denounced the gap between the amounts paid to bosses and average workers as irrational and unhealthy. The survey by the Chartered Institute of Personnel and Development (CIPD) and the High Pay Centre think-tank showed the average income for chief executives of companies in the FTSE 100 share index was 5.7 million pounds ($7.25 million) in their financial year ending in 2017, up 23 percent from the previous year.

The increase far exceeds the 2.5 percent increase in average (mean) salaries for British workers to 29,009 pounds, according to the Office for National Statistics.

A similar study a year ago showed bosses’ average pay had dropped by 17 percent over the previous year. CIPD said the strong performance of the stock market in the years to 2017 was probably a factor in this year’s increase but that this should prompt questions about the contribution of individual bosses to share performance as opposed to other factors such as economic context or the wider workforce.