Up by 11% - Chief Executive’s pay rose to almost £4m last year

  Posted on 16/08/2018

A new report has found that Chief executive pay rose by 11% last year to almost £4m. This compared to a 2% increase for the average UK worker.

According to the CIPD, the median pay for FTSE 100 chief executives was £3.93m last year, up from £3.53m in 2016. However, it is believed that the chief executive of Persimmon Homes, Jeff Fairburn, has a payout of approximately £47m.

In addition, it is also believed that bosses were paid on average 145 times more than their employees – up from 128 times in 2016.

In June, the government stated that all companies with over 250 employees would be required to publish their pay ratios. Unions want ministers to go further, guaranteeing worker representatives on companies' executive pay committees.

GMB general secretary, Tim Roache said the figures exposed the "shocking excess" in UK boardrooms.

"We live in a country where company fat cats get paid 400 times more than the dedicated, hard-working carers who look after our nearest and dearest - not to mention hundreds of times more than those who keep our streets clean, or ambulance workers who save lives."

The union called the findings a “badge of shame.”

A spokesman from the Department for Business said: "While most companies get their responsible business practices right, we understand the anger of workers and shareholders when bosses' pay is out of step with company performance. That is why as part of our corporate governance reforms, the UK's largest companies now have to ensure employees' interests are represented in the boardroom and annually publish and explain the pay ratio between senior management and the workers.”