Fat cat pay ‘up by 288 per cent’
Fat cats just keep getting fatter, according to the latest research from Incomes Data Service, which claims that increases in executive pay over the last decade have been six times greater than those of average workers.
Average earnings in the UK have risen by 45% in the last ten years, while the top directors’ incomes have increased by 288% – including bonuses and incentive packages.
The IDS survey, which looks at 1,800 executives, suggests that the average income for a FTSE 100 boss is now £1.3m.
But critics of high executive pay levels have claimed that the performance of most companies in the last financial year does not appear to have justified high pay rates and bonuses.
On average over the last year, salaries across the UK’s top 350 companies have increased by over 9% and total cash received by those directors from their companies has gone up by 13% – reflecting an upturn in bonus payments according to IDS.
The report claims that new regulations have improved reporting about directors’ remuneration packages. However, it adds that there has been no improvement in transparency ‘in the disclosure of the cash amounts received from long-term incentive plans, although this was a prime area of concern’.
The report comes after the CBI urged business to put its own house in order over excessive pay packages before the Dti, which ended a consultation on the issue last month, feels forced to make legislative changes.
However, business figures have pointed out that in a very competitive global market the best executives will continue to command high salaries.
And IDS also points out that the average figures quoted in its report disguise big variations among the leading companies, with 14% of executives receiving no pay increase at all last year, while around one in ten received increases of over 20%.
