Directors of the top 100 listed UK companies now earn 120 times the average sum earned by their employees, according to a report by Incomes Data Services (IDS).
Executive pay has escalated far faster than average pay. In 2000, bosses of top companies earned 47 times more. A director now typically earns £2.43m a year while the average annual salary is at £27,000.
This year bosses' pay rose by more than a fifth, driven by a 44% rise in share awards, which were given as long-term incentives. Bonuses were also up, by 12%.
Basic salaries were £822,300, up by 2.5%. That, t is still some three times the size of average wage rises here (excluding bonuses), average earnings in the May to July period rose by 0.7% from a year earlier; and including bonuses, they rose by 0.6%.
Steve Tatton, editor of the IDS report, said: "Salary rises may be modest but this can be more than made up for by the receipt of incentive payments. When such incentives pay out, they can pay out substantial sums, giving a significant boost to directors' earnings."
Executive pay has escalated far faster than average pay. In 2000, bosses of top companies earned 47 times more. A director now typically earns £2.43m a year while the average annual salary is at £27,000.
This year bosses' pay rose by more than a fifth, driven by a 44% rise in share awards, which were given as long-term incentives. Bonuses were also up, by 12%.
Basic salaries were £822,300, up by 2.5%. That, t is still some three times the size of average wage rises here (excluding bonuses), average earnings in the May to July period rose by 0.7% from a year earlier; and including bonuses, they rose by 0.6%.
Steve Tatton, editor of the IDS report, said: "Salary rises may be modest but this can be more than made up for by the receipt of incentive payments. When such incentives pay out, they can pay out substantial sums, giving a significant boost to directors' earnings."
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