By 5.30pm today (Wednesday 6 January) the average FTSE 100 Chief Executive would have already earned more this year than the average annual salary of UK workers. They only had to work 34 hours to earn £31, 461 which is the average medium wage for full time workers.
Median FTSE 100 chief executive pay was £3.61m in 2019.
This is 120 times more than average. .
While many would accept that Chief Executives of large successful companies should get decent pay why has this ratio from average to top earner increased from estimated 50 times in 2000 and 20 times in the 1980s?
This is 120 times more than average. .
While many would accept that Chief Executives of large successful companies should get decent pay why has this ratio from average to top earner increased from estimated 50 times in 2000 and 20 times in the 1980s?
A rather strange justification from the Adam Smith Institute for such a massive growth in pay for Chief Executives. Claiming that studies show the negative impact of deaths of CEOs on company share prices? A Vicky Pollard justification for such silliness. Of course a company share price would tend to be negatively impacted if its CEO dies suddenly.
The Adam Smith Institute ought to remember what their names sake wrote in 1776 about shareholders being ripped off by agents (modern day chief executives)
All these pay deals for chief executives are voted upon at annual general meetings. ESG advisor PIRC reminds pension trustees such as myself that "There's a pretty easy test for trustees here - check your asset managers' voting records. If they are voting for most executive remuneration policies they are helping to create this outcome. If you don't like what you see, don't let them vote your shares".
All these pay deals for chief executives are voted upon at annual general meetings. ESG advisor PIRC reminds pension trustees such as myself that "There's a pretty easy test for trustees here - check your asset managers' voting records. If they are voting for most executive remuneration policies they are helping to create this outcome. If you don't like what you see, don't let them vote your shares".
