But best pay rises go to already filthy rich firms’ bosses
THE pay of company chief executives has soared by 11 per cent in the past year – with the average boss now pocketing £4million.
Bumper pay rises enjoyed by top executives compares with just 2 per cent for full-time workers, according to research by Chartered Institute of Personnel and Development (CIPD) and the High Pay Centre.
The figures come amid a row over fat cat pay in the City. This year a number of major firms have been rocked by revolts from investors who are sick of the excess salaries and bonuses handed out.
Royal Mail saw the second biggest revolt in modern times over the £2.7million pay deal handed to its new chief executive, Rico Back.
There has also been anger over the £10.4million paid to Unilever chief Paul Polman, and the whopping £42million handed to Simon Peckham in 2017, the boss of buyout firm Melrose prior to its takeover of engineer GKN. Ousted WPP founder Martin Sorrell also picked up £13.9million last year.
Unions said the figures by the CIPD exposed the ‘shocking excess’ in Britain’s boardrooms. The report also found women make up 7 per cent of FTSE 100 chief executives but earn 3.5 per cent of total pay.
Peter Cheese, chief executive of the CIPD, said: ‘It’s disappointing to see CEO pay has held up in the face of increasing pressure when average pay across the workforce has barely shifted in recent years.’
Luke Hildyard, director of the High Pay Centre, said: ‘It is deeply unsettling such a substantial pay gap remains between CEOs and ordinary workers.
‘CEO pay increases reflect poorly on corporate culture and accountability and suggest that bolder reforms to corporate governance may be needed.’
Tim Roache, GMB General Secretary, said: ‘We live in a country where company fat cats get paid 400 times more than the dedicated, hard-working carers who look after our nearest and dearest.’
And shadow chancellor, John McDonnell, echoing the sentiments, said: ‘Most people’s wages are still below 2010 levels and are barely keeping up with inflation.’
A Business Department spokesman said: ‘While most companies get their responsible business practices right, we understand the anger of workers and shareholders when bosses’ pay is out of step with company performance.
‘That is why as part of our corporate governance reforms, the UK’s largest companies now have to ensure employees’ interests are represented in the boardroom and annually publish and explain the pay ratio between senior management and the workers.’
‘Fat cats get paid 400 times more’