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)
|Incentive pay received||£118,441|
James Bloodworth is the editor of Left Foot Forward. Follow him on TwitterLike this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by becoming a Left Foot Forward Supporter today.