New figures present that the common FTSE 100 CEO noticed their pay soar from £2.46m to £3.41m between 2020 and 2021.
This era covers the peak of the coronavirus pandemic, when many bosses took a voluntary pay lower as they positioned tens of millions of staff on furlough.
The figures from the TUC and the Excessive Pay Centre suppose tank reveal a FTSE 100 CEO is paid 109 occasions greater than the common full-time employee.
Within the wake of the pandemic, CEOs loved a wage enhance of 39 per cent. CEO pay is now increased than pre-pandemic ranges, surpassing the £3.25m median recorded in 2019.
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Branding the CEO wage enhance as “sickening”, Gary Smith, GMB Common Secretary warned: “We’re within the midst of a cost-of-living disaster with many staff unable to warmth their properties and feed their households.
“There’s nothing flawed with being paid for a job properly executed, however the lack of ‘restraint’ from these on the prime is a slap within the face to staff who’re being denied a correct pay rise.”
Frances O’Grady, the final secretary of the TUC, stated the rising disparity between pay on the prime and that paid to staff is fuelling the price of residing disaster.
O’Grady referred to as on the federal government to introduce robust guidelines to “rein in govt pay”. “This could embrace employee representatives on the committees that set prime pay, and elected seats for staff on firm boards,” she stated.
“This strategy is already commonplace in lots of nations and works very properly. The federal government ought to give UK staff this chance too.”
Nonetheless, Professor Len Shackleton, Editorial and Analysis Fellow on the Institute of Financial Affairs, disagrees.
He believes that limiting CEO pay may even have damaging impacts on the economic system: “Imposing restrictions on CEO pay, or imposing commerce union representatives on remuneration committees (because the HPC needs) or on firm boards (because the TUC needs) would make working, investing and firm itemizing within the UK a lot much less enticing.”
The info additionally reveals that FTSE 100 CEOs’ annual bonuses jumped to £1.4m in contrast with £828,000 in 2020. 9 in 10 of the bosses obtained a bonus.
In complete, the FTSE 100 companies spent greater than £720m on pay awarded to 224 prime executives.
