Janet Williamson writes on the TUC Touchstone blog:
The High Pay Commission (HPC) – whose commissioners include TUC Deputy General Secretary Frances O’Grady – has brought out its interim report. It includes a blizzard of charts, figures and tables that clearly establish that executive pay has increased rapidly over the last fifteen or so years and has left the pay of average workers trailing far behind. Average FTSE 100 CEO total pay was 145 an average worker’s salary in 2010, and the HPC calculates that if current trends continue by 2020 the multiple will be 214.
The report also shows that rapid rise in executive pay does not reflect company performance or returns to shareholders: earnings per share actually fell by 1% per year between 1998 and 2009, while earnings of FTSE 100 CEOs rose 6.7% per year over the same period. To sum up: executive pay awards are neither fair nor linked effectively to performance. In other words, the current system is not working.
Want to read more? Follow the link to the full article: http://www.touchstoneblog.org.uk/2011/05/more-for-less-pay-at-the-top/
The High Pay Commission (HPC) – whose commissioners include TUC Deputy General Secretary Frances O’Grady – has brought out its interim report. It includes a blizzard of charts, figures and tables that clearly establish that executive pay has increased rapidly over the last fifteen or so years and has left the pay of average workers trailing far behind. Average FTSE 100 CEO total pay was 145 an average worker’s salary in 2010, and the HPC calculates that if current trends continue by 2020 the multiple will be 214.
The report also shows that rapid rise in executive pay does not reflect company performance or returns to shareholders: earnings per share actually fell by 1% per year between 1998 and 2009, while earnings of FTSE 100 CEOs rose 6.7% per year over the same period. To sum up: executive pay awards are neither fair nor linked effectively to performance. In other words, the current system is not working.
Want to read more? Follow the link to the full article: http://www.touchstoneblog.org.uk/2011/05/more-for-less-pay-at-the-top/
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