08 August 2016
FTSE 100 CEOs have seen their pay rise by 10% to an average of £5.5 million a year at a time when the average worker is seeing a continued fall in real wages.
This is according to the latest annual survey by the High Pay Centre, which found that the ratio between average pay and FTSE 100 CEOs was at an extraordinary 183:1 in 2015, up from 182:1 in 2013 and 160:1 in 2010.
Since January 04 this year, the average FTSE 100 CEO has earned around £3 million at the time of writing.
In contrast, real wages for the average British worker have fallen by 10.4% since 2007, the largest drop in Europe, matched only by Greece, according to recent research undertaken by the TUC.
Stefan Stern, director of the High Pay Centre, said: “There is apparently no end yet in sight to the rise and rise of FTSE 100 CEO pay packages. In spite of the occasional flurry from more active shareholders, boards continue to award ever larger amounts of pay to their most senior executives.”
He added: “Businesses could save themselves a lot of grief, and do something to restore their reputations, if they listened to workers first before awarding these bumper pay packages.”
Indeed, the Institute of Employment Rights believes increasing workers’ voices could help to remedy the soaring pay gap in the UK, boosting our nation’s economy as well as making work fairer for all. Britain currently has the highest wage inequality in Europe despite being the world’s 5th largest economy.
In our Manifesto for Labour Law, which has been backed by Jeremy Corbyn’s team, we set out 25 evidence-based policies to ensure workers are heard across the economy and can negotiate for better wages and conditions to level out the playing field.