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Saturday, 08 April 2017 12:56

Are Britain’s bosses really worth 386 times more than the average worker?

Always a controversial topic – money and the amount we earn. But what about the out-of-control executive pay gap that reveals a huge disparity in the ‘fat-cat’ salaries of Britain’s senior bosses and undermines the government’s efforts to create “a fairer society” or an economy that “works for everyone”.

Forget the ‘glass’ ceiling in this instance, the ‘class’ ceiling reveals the eye-watering difference in obscene pay and undeserved rewards FTSE 100 CEOs bank balances hold, pocketing an average of £5.5 million a year, compared with just £13,662 for someone on the national living wage of £7.20 an hour. We live in a world where senior bosses pay less tax than the cleaner and pretend they’re worth thousands if not millions of pounds more than the lowest paid staff.

What slaps you in the face harder is that less than a third of FTSE 100 companies officially ascribe to the Living Wage, with only 29 of the UK’s largest companies signed up to pay the Living Wage! It’s a scandal that companies are refusing to pay their employees a decent wage, yet the very same companies awarded FTSE 100 CEO’s a pay rise of 10 per cent on average last year! 

The widening gap that has emerged within many companies between CEOs and their employees is down to the old traditional British social divisions, once hoped to be out of date. Please!! The very fact that 45 per cent of CEOs and chairs of FTSE 100 companies were privately educated, compared to just 7 per cent of the wider population means the pay gap between bosses and workers is now astronomical. So much so, it would take a full-time worker earning the National Living Wage over 400 years to earn just one year’s average pay for a FTSE 100 CEO.

Hardly surprising then is the news that the average FTSE chief executive earns 386 times more than a worker on the national living wage and more than two-thirds of FTSE 100 CEOs were paid more than 100 times the average UK salary according to new analysis published by the Equality Trust. That’s 165 times more than a nurse, 140 times more than a teacher, 132 times more than a police officer and 312 times more than a care worker – people who actually do jobs that matter!!

Prime Minister Theresa May is apparently making plans to give shareholders legal rights to block excessive pay packages, according to a recent article in The Sunday Times. Funnily enough though, her own MP’s have blamed shareholders themselves for the level of Boardroom pay packets – and what about the Government actually stepping in to address the issues?!

Jeremy Corbyn has previously outlined his desire to curb excessive boardroom pay. Although he’s not gone as far as backing a maximum wage limit, he has voiced concerns about the widening pay ratios that exists between executives and employees.

How does your salary compare to the UK average? The average pay for all employees stands at £28,296, and average median pay, which tends not to be distorted by a few mega-earners, is £23,099. But, if you want to see just what those ‘fat-cat’ bosses earn, take a look here.

If you want to shout about ‘fat-cat’ pay, The Equality Trust has developed a petition calling on the Government to introduce mandatory pay ratios. To sign the petition, you can visit here.

 

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