The gap between the pay of UK CEOs and the average worker has been a topic of discussion for years. However, a new report has revealed that UK CEOs outpace the average annual pay in only four days.
The report, conducted by the High Pay Centre and the Chartered Institute of Personnel and Development (CIPD), found that the average FTSE 100 CEO earned £3.46 million in 2018, which is 117 times the average annual pay of a full-time worker in the UK.
The report also found that the average FTSE 100 CEO earns more in a single day than the average worker earns in an entire year. In fact, it takes just four days for a CEO to earn the same amount as the average worker.
This stark contrast in pay has led to calls for greater transparency and accountability in executive pay. The report recommends that companies should be required to publish the ratio of CEO pay to the median pay of their workforce, as well as the ratio of CEO pay to the lowest-paid worker.
The report also suggests that companies should be required to have employee representatives on their remuneration committees, which determine executive pay. This would ensure that the views of employees are taken into account when setting executive pay.
The issue of executive pay has been a contentious one for many years, with critics arguing that it is a symptom of a wider problem of income inequality. The report highlights the need for companies to take a more responsible approach to executive pay, and to ensure that their employees are paid fairly and equitably.
In conclusion, the report’s findings are a stark reminder of the growing gap between the pay of UK CEOs and the average worker. It is clear that more needs to be done to address this issue, and to ensure that companies take a more responsible approach to executive pay. By doing so, we can create a fairer and more equitable society for all.
