fooling ourselves

According to Australian Bureau of Statistics data, the wealthiest 20 per cent own 61 per cent of the country's wealth, while the poorest 20 per cent own 1 per cent.

In research co-authored by a Harvard University psychologist, Australians - regardless of their own wealth and politics - significantly overstate the income of the poor and understate the wealth share of rich Australians. Australians actually think that Australia's society is more equal than what it actually is and they think that it should be more equal.

When asked how they thought wealth was shared across income groups and what would be their ''ideal'' society, the results, from 1000 adults representative of the Australian population, showed people thought the poorest group had 10 times more wealth than they actually do, while the rich have 50 per cent more, and 2.5 times more than what the survey respondents thought was ''ideal''.

''There is an illusion people have that we are much more equal society than we actually are.'' said Australian Council of Trade Unions assistant secretary Tim Lyons.

Meanwhile, The Independent reports pay inequality is accelerating in Britain. As the majority of people in the country face the largest drop in household income for three decades, a tiny minority at the top are awarding themselves a growing slice of the UK's wealth. The top one thousandth of the British working population currently receives 5 per cent of the country's earnings. Top bosses set to earn 215 times the average wage by 2020 and if these trends continue, income for the highest paid will account for 14 per cent of the country's total by 2030 – the same proportion as in 1900.

Currently the average salary for the highest-paid CEOs is more than half a million pounds. By 2020 this figure is expected to be £1m. Chief executives of FTSE 100 companies earn an average of £3.7m – or 145 times the average wage. By 2020 they are expected to be paid 214 times more than the average.

It concludes that during the decade the Labour Party was in power, income at the top grew by 64.2 per cent, while that of an average earner increased by 7.2 per cent over the same period.

Deborah Hargreaves, the chairman of the High Pay Commission, set up in November to scrutinise the rising pay of those at the top, said: "This is the clearest evidence so far that the gap between pay of the general public and the corporate elite is widening rapidly and is out of control."

Bart Becht

Chief executive of Reckitt Benckiser

Paid £18.2m last year, 702 times the median national wage

The company behind household products such as Cillit Bang and Air Wick knows how to make its executives feel appreciated.

Frank Chapman

Chief executive of British Gas

Paid £28m last year, 1,081 times the median national wage

As customers struggled to pay soaring gas bills last winter, Chapman was reaping the benefit. His basic salary of £1.14m and bonus of £1.6m were boosted by a further £5.26m from a long-term incentive scheme and £15.5m from share options which he exercised in September.

Mick Davies

Chief executive of miner Xstrata

Paid £27m in 2009, 1,042 times the median national wage

Davies is one of the highest paid people in the FTSE 100. He has expanded the mining giant's coal assets, despite concerns of environmentalists. This summer the company tackles Friends of the Earth in court over plans to build the world's biggest mine in Australia.

Martin Halusa

Chief executive, Apax Partners

Paid £13m in 2010, 502 times the median UK wage

The private equity investment group behind such household names as the high-street chain New Look has seen its profits soar during the recession. Private equity groups have been accused by politicians and trade unions of "behaving like locusts" by "asset-stripping, slashing jobs and paying outrageous rewards".

Bob Diamond

Chief executive, Barclays

Income Up to £27m if his bonuses and shares pay out, 1,042 times the median national wage

Diamond did himself no favours when he said that "the time for remorse is over" and that bankers should stop apologising. After a salary of £250,000 and £6.5m in bonuses, he is also in line for a further £6.75m of shares that could pay out in the future. Share deals from the past five years yielded some £13.8m.