08/08/2016 - Fat Cats get fatter

fatcatFat Cats are getting fatter. Research reveals that company bosses have scored huge pay rises as workers face continued wage cuts and stagnation. That's according to research by a leading think tank published this week.

A study of annual reports from FTSE100 companies by the High Pay Centre reveals that the average take-home pay for a chief executive jumped by 10 per cent from £4.96 million in 2014 to £5.48 million last year.

The research also shows that, on average, chief executives were paid an astonishing 140 times more than their staff.

Yet in contrast to huge payouts to bosses, only a quarter of FTSE100 companies are accredited as employers paying the living wage, which is currently £9.40 per hour in London and £8.25 per hour in the rest of Britain.

High pay also remains largely male-dominated, with no women in the top 10 highest-paid chief executives of FTSE100 companies.

The study also finds that none of the companies publishes details of the pay ratio between chief executives and other employers, and only one company has an employee representative on the board.

High Pay Centre director Stefan Stern said: “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 called for more employee involvement in discussions of executive pay, arguing: “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.”

Pat Harrington, general secretary of Solidarity, backed his campaign:

"Boardroom pay should be related to the amount ordinary workers are paid in a ratio. There is just too big a gap between workers pay and bosses.In that I wold go further than both Stefan and the TUC. A pay ratio is typically calculated as the ratio of the pay of the highest paid employee of an organisation to the pay of the average or lowest paid employee in that organisation. I believe that should be legislated on. Considerable research indicates that smaller income inequality improves worker retention and reduces workplace conflict and sickness It also indicates that society becomes, generally, more happy and harmonious for everyone living within it. I agree with the HIgh Pay Centre that it is high time that workers gained representation at board level and had a say on remuneration of top Executives."