Gap widening, says study
Top bosses earn average worker’s 2019 salary by 1pm today
The research reveals that the gap has widened as senior executives will have to work two hours fewer than in 2018.
A chief executive of a FTSE 100 firm has typical pay packet of £3.9 million, an 11% increase on a year ago, according to the study by the High Pay Centre and the Chartered Institute of Personnel and Development (CIPD).
It found that top chief executives are paid 133 times more than the average worker, equalling the employee’s annual salary by 1pm today, dubbed “Fat Cat Friday”.
The study found that the average FTSE 100 chief executive is paid just over £1,000 an hour, compared with the national living wage of £7.83 for adults.
It was published just three days after new UK government regulations came into force aimed at tackling the pay gap by forcing companies to publish details of remuneration.
Luke Hildyard, director of the High Pay Centre, said: “Excessive executive pay represents a massive corporate governance failure and is a barrier to a fairer economy.
Scottish Labour’s spokesman on finance, James Kelly, said: “These figures show the truly shocking income gap between working people and the fat cats at the top of Britain’s largest companies.
“Whilst many of those in work have to resort to using food banks as they do not earn enough, chief executives have already pocketed an average worker’s annual salary.
“The grotesque inequalities within our society under the Tories has got worse with chief executives earning the sum even faster than last year.
“The next Labour government will give working people a real £10 per hour real living wage and transform our economy so it works for the many, not the few.”