Monday, May 23, 2022

Bosses Pay Bonanza

 The gap between the pay of company executives and other workers is set to widen this year after falling during the height of the Covid pandemic, the High Pay Centre said.

Cuts to executive pay led to a fall in the median pay gap between bosses in FTSE 350 firms and employees last year. But it said early data indicated that the gap will widen again in 2022.

69 companies that disclosed pay ratios in the first months of 2022 to the High Pay Centre, the average chief executive to average employee pay ratio was 63:1 - almost double the ratio for the same group of companies in 2021, at 34:1.

Mubin Haq, chief executive of the abrdn Financial Fairness Trust said wage growth for those on lower incomes would be "critical" to ensure "millions can weather the cost-of-living crisis we are now facing".

The High Pay Centre's most recent chief executive pay analysis said the average FTSE 100 boss was paid £2.69m in 2020. The figure was 86 times the average full-time UK worker.

TUC general secretary Frances O'Grady said: "Pay inequality has gone much too far. Even for the best-performing executives, pay can be out of all proportion compared to hard-working staff on the frontline."

Pay gap from bosses to staff to widen - think tank - BBC News

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