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FTSE 100 bosses earn average salary of nearly 55m per year

FTSE 100 bosses earn average salary of nearly £5.5m per year

‘Irrational, unhealthy’ pay gap continues to grow as FTSE bosses receive a 10% pay rise

The bosses of Britain’s largest companies take home an average income of £5.48m a year and have received 10% pay rises according to the latest report.

The study of annual reports from FTSE 100 companies showed that the average pay for a chief executives rose from £4.96m in 2014.

It also exposed the fact that, on average chief executives were paid 140 times more than their employees.

The High Pay Centre stated that chief executives from the FTSE 100 index saw a mean average income increase of 10% in 2015.

And the median rate of pay increased to just under £4 million, which is 144 times the median wage for the average person working in Britain (£27,600).

In a dramatic contrast to the chief executives’ excessive wage packages, only a quarter of FTSE 100 firms have been accredited by the Living Wage Foundation for paying their employees the national living wage.

British boardrooms have also been dubbed ‘a boys club’ by the chief executive of the Chartered Management Institute, Ann Francke, as the report also uncovered the lack of women in the top 10 highest paid chief executive positions.

The top three bosses from the FTSE 100 index are led by WPP’s Sir Martin Sorrell on £43 million, Berkeley’s Tony Pidgley on £19.5 million and Reckitt Benckiser’s Rakesh Kapoor on £16.1 million.

These findings come only weeks after Theresa May proposed a crackdown on excessive salaries in the boardroom.

Last month she stated that there was an “irrational, unhealthy and growing gap” between the salaries that leading companies pay their workers and their bosses. Further stating that votes on executive pay should be binding.

Director of the High Pay Centre, Stefan Stern said that the report shows that there is “no end in sight to the rise and rise of the FTSE 100 chief executive pay packages. In spite of the occasional flurry from more active shareholders, boards continue to award ever larger amounts of pay to their most senior executives.”

However, he did note that he was impressed with number 10’s interest in the issue:
“The High Pay Centre was delighted by Theresa Mat’s recent intervention on this issue. There now seems to be political will and momentum behind attempts to reform top pay.”

“In particular, we support two of [the prime minister’s] main proposals” that companies should be obliged to publish the ratio between the pay of chief executive and the average worker in the business; and that the voice of the ordinary employee must be heard in discussions over executive pay.”

Melanie Luff

About the author

Mel wrote for all titles in the Dynamis stable including, and as well as other global industry publications.


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