The pay of FTSE 100 directors grew by 14 per cent in the last year - 20 times faster than that of the average worker.
The pay of FTSE 100 directors has grown by 14 per cent in the past year – 20 times faster than that of the average worker, according to figures released today by Income Data Services which tracks pay trends.
Recent figures from the Office for National Statistics show that total pay (including bonuses) across the labour market grew by just 0.7 per cent in the period July to September 2013 compared with a year earlier.
This is well below the Consumer Price Index (2.2 per cent) and the Retail Price Index (2.6 per cent).
But for FTSE 100 directors pay grew during the same period by a whopping 14 per cent – 20 times faster than that of the average worker.
Commenting on the figures, TUC general secretary Frances O’Grady said Britain’s top bosses were “back to their old tricks”.
“It’s one thing replacing bonuses with long-term incentive plans, but FTSE 100 companies are simply exploiting this change to make their fat cats even fatter,” she said.
“The time has come for legislation to put ordinary workers on the pay committees of companies. This is the only way to bring some sanity to the way in which directors are paid.”
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5 Responses to “Pay of FTSE 100 bosses grows 20 times faster than average worker”
Sparky
So what? Companies are free to pay their employees whatever they like. If I want to pay my Sales Director £1m and everyone else £25K then that’s my business. It’s nothing to do with you. It’s only your concern if you hold shares in the company. Then the shareholders can vote on executive pay.
I note how the age-old socialist solution -new laws- crops up at the end. More laws, state control of people’s lives, that smug, paternalistic “we know what’s best for you” attitude, whoops, another little piece of freedom slips away.
frank100
Actually many of us are shareholders indirectly via the pension companies but we don’t get to vote on the ceo’s salary or bonus. The pension companies can, but often do not, vote on our behalf. Where is the freedom in that?
blarg1987
Add to that also that shareholder votes are not legally bindingsocan ignore whatever shareholders say.
Alastair Sloan
Too much of the inequality debate focuses at the top end and not enough at the bottom. It’s good having high earners, they pay lots of income tax and drive overall growth in the economy.
it’s Living Wages at the bottom that need addressing ie 600,000 londoners in poverty.
Placing a “worker” on the board would only serve to highlight the unfairness, and provide more fodder for criticism via case studies. People don’t mind high earners when the economy is steaming ahead, but when the economy tanks, we blame them. We should always, always, whether economy is booming or busting, be campaigning for a Living Wage.
TM
Alastair, and this is why Working class people are being cleansed from all spheres of British life, especially politics, because a Working class person who has had low paid jobs could say in 5 minutes what is needed to be done, that would take a Middle class Leftie or Middle class little Englander 5 years! That’s why they all hate or fear or patronise Working class people. The truth is a stranger to most of those in power.