TOP bosses at the UK’s leading companies are paid 133 times more than most of their staff, new research reveals.
By 1pm today — dubbed Fat Cat Friday — leading chief executives will have been paid as much since the beginning of 2019 as an average employee gets in a year.
According to the study, the average FTSE-100 CEO is paid just over £1,000 an hour, compared with the national living wage of £7.83.
They scoop up £133 for every £1 earned by their workers, the High Pay Centre and the Chartered Institute of Personnel and Development (CIPD) found. Twenty years ago, top bosses were paid £45 for every £1 handed to their staff.
Peter Cheese, chief executive of the CIPD, said the gap between top earners and the rest of the workforce showed that urgent reform was need to the system of remuneration committees which set the pay of top bosses.
He said: ‘Average pay has stagnated while top CEO reward has grown, despite slow economic growth and very variable business performance. Excessive pay packages perpetuate the idea of a “superstar” leader when business is a collective endeavour and reward should be shared more fairly.’
Luke Hildyard, director of the High Pay Centre, said: ‘Corporate boards are too willing to spend millions on top executives without any real justification, while the wider workforce is treated as a cost to be minimised.’
A study by the two organisations in August found that top CEOs have a median average pay packet of £3.9million — up 11 per cent in a year. TUC general secretary Frances O’Grady accused ‘greedy executives’ of taking more than they had earned and called for ‘big reforms to bring fat cat pay back down to earth’.
Companies now have a legal requirement to collect pay gap data.