The highest paid committee member earned 339 times more than the average wage
FTSE 100 remuneration committee members were paid 16 times more than the average worker’s earnings, with the highest paid committee member paid a whopping 339 times more than average earnings, according to a new report.
A Culture of Excess, published today by the TUC, found that FTSE 100 remuneration committee members were paid on average £441,383, with the highest paid member raking in over £9m.
Executive pay in listed companies is set by a remuneration committee consisting largely of board members of other companies. Nearly two thirds of remuneration committee members (64 per cent) held at least one additional board position on another company, according to the report.
Meanwhile two-thirds of FTSE 100 companies shared one member of their remuneration committee with another FTSE 100 remuneration committee. 33 people were members of more than one FTSE 100 remuneration committee during 2014, and over a third of FTSE 100 companies had an executive director from another company on their remuneration committee.
The report recommends that remuneration committee membership should be broadened out to include company workers.
Commenting on the report, TUC general secretary Frances O’Grady said:
“The excessive earnings of remuneration committee members demonstrate just how far removed they are from the rest of Britain – especially as in most cases it does not even amount to full-time work.
“Ordinary workers need to be included on committees to add some common sense and reality to boardroom pay decisions. It should not be a closed shop for an elite who are only interested in looking after their own.”
FTSE 100 Remuneration committee members – breakdown of remuneration, including from other directorships. All figures are averages (mean)
| Cash | £307,414 |
| Pensions | £15,528 |
| Incentive pay received | £118,441 |
| Total | £441,383 |
James Bloodworth is the editor of Left Foot Forward. Follow him on Twitter
4 Responses to “Committee that sets executive pay rakes in 16 times more than average worker”
Mike Stallard
I am an OAP.
Do you know what? This doesn’t bother me at all. If they take too much, the whole thing goes under. They know that. I wonder how many Labour people and TUC people take this amount of money? None? That is not what I hear down at the gym. (I have a friend whose son works in offshore banking.)
Guest
No, you’re a whining old person. There’s a sharp difference.
Keep defending your pay rates. Keep attacking anyone else who gets paid decent cash for actually working, as you admit you have a friend with a leech of a son…and that you swap lies down Capitalism Gym…you don’t have to work, after all.
Kevin Stall
Could the average person do this job? Or even understand what the job entails? No, so they make more than the average person because they have skills.
Guest
Yes, easily, it’s not remotely demanding.
The only skill on show here from the members is stuffing their mouths with money.