Tuesday 27 September 2016

FTSE-100 chiefs get 183 times an average worker's pay

Published 18/08/2015 | 02:30

The gap between the pay of senior executives and the people who work for them is becoming increasingly scrutinised by politicians in the UK and the US. Photo: PA
The gap between the pay of senior executives and the people who work for them is becoming increasingly scrutinised by politicians in the UK and the US. Photo: PA

The chief executives of Britain's biggest listed companies were paid about 183 times more than the average UK worker last year, even as investors protested excessive boardroom rewards.

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According to data from the High Pay Centre, a think tank set up to look at the widening income disparity at British companies, the average FTSE-100 CEO earned £4.96m (€6.9m) in 2014. Average pay was £4.13m (€5.81m) in 2010, about 160 times that of a worker.

The gap between the pay of senior executives and the people who work for them is becoming increasingly scrutinised by politicians in the UK and the US. A survey by the AFL-CIO union in the US found that the CEOs of 350 Standard & Poor's 500 companies made 331 times more than their employees in 2013, up from a ratio of 46-to-1 in 1983.

"Pay packages of this size go far beyond what is sensible or necessary to reward and inspire top executives," Deborah Hargreaves, director of the High Pay Centre, said. "It's more likely that corporate governance structures in the UK are riddled with glaring weaknesses and conflicts of interest."

Irish Independent

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