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The gap between senior executives’ salaries and earnings in the UK declined in 2020, as companies affected by the epidemic eliminated bonuses and depositors increased their payroll monitoring.
The average pay of senior executives of FTSE 100 companies was 86 times higher than the average salary of a full-time employee, according to a study published Friday by the think tank High Pay Center.
While this is still a huge gap, it is the biggest decline since the last two years, when the earnings of FTSE 100 executives were about 120 employees in the UK.
This reflects the temporary suspension of pay and bonus cuts announced by many companies following the initial shutdown of Covid-19, as CEO salaries fall from £ 3.25m in 2019 to £ 2.7m in 2020.
The average UK wage for full-time employment also fell between 2019 and 2021, despite the fact that it was disrupted due to growth and other epidemic effects. Although wage growth has increased, it looks set to improve in the coming months due to rising inflation.
The High Pay Center estimates that 2022 will be the first year in a decade when executives will have to work until the fourth day of the new year to receive a pay rise equal to that of a typical domestic worker throughout the year. .
Executive salaries have already begun to rise in recent years, following a period of rapid growth that has led to more political scrutiny and the establishment, starting in 2020, the requirement for large corporations to disclose the salary of their chief executive and company employees. different ages.
Companies since then forced by investors ensuring that employers’ salaries reflect the concerns of the majority of the people, including shareholders and employees, during the epidemic.
Social attitudes are becoming increasingly difficult: a study conducted by the High Pay Center and Survival firm found that many people believe that high pay is a result of educational and social opportunities, not a reflection of difficult or important work.
“Some low-paying jobs have been instrumental in making people more effective in the epidemic. Due to the UK economy, there is a lot of pressure to share what we have in common,” said Luke Hildyard, chief executive of High Pay Center, adding: ” In that sense, it can be difficult to justify the pay gap for employees. ”
It remains to be seen whether the monetary policy reform will end. The High Pay Center said most FTSE 100 companies had not yet announced major reports for the fiscal year ending in 2021, but most were showing an increase in 2020.
The campaign group is supporting calls for organizations and opposition parties to continue reforming policies to avoid higher pay – including the need for companies to bring elected representatives to pay committees, an idea that Theresa May’s government has seen, but has since abandoned.
Frances O’Grady, secretary general of the Trades Union Congress, said the figures highlight the need for “significant changes to bring global CEO payroll”, not only to include staff members in pay committees but also to leadership and profit management strategies. – sharing plans for the benefit of all corporate employees.
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