T
he bosses of Britain’s greatest firms noticed their pay surge by 16% final yr as most employees noticed their pay packets outstripped by inflation, in line with new analysis.
The High Pay Centre mentioned chief govt officers for companies on the FTSE 100 – the index of the UK’s largest publicly listed firms – had a mean pay rise of round £500,000 in 2022.
Unions mentioned the info reveals that Britain has develop into “a land of grotesque extremes”.
Median pay for a FTSE 100 CEO elevated from £3.38 million in 2021 to £3.91 million in 2022, the High Pay Centre mentioned.
It represents a continued upward development after it dropped to £2.46 million in 2020 as firms have been impacted by the Covid-19 pandemic.
How main employers distribute the wealth that their workforce creates has a big effect on individuals’s residing requirements
The analysis reveals that the hole between bosses and employees widened additional over the yr, with it recording that the median FTSE 100 CEO was paid 118 instances the median UK full-time employee, up from 108 instances in 2021.
AstraZeneca boss Pascal Soriot was the highest-earning FTSE 100 chief after receiving pay of £15.3 million for the yr.
Other significantly extremely paid chief executives included Charles Woodburn of BAE Systems, Bernard Looney of BP and Ben van Beurden of Shell.
The High Pay Centre has known as for brand new necessities for firms to incorporate a minimal of two elected workforce representatives on the remuneration committees that set govt pay.
Luke Hildyard, director of the assume tank, mentioned: “At a time when so many households are struggling with living costs, an economic model that prioritises a half-a-million-pound pay rise for executives who are already multi-millionaires is surely going wrong somewhere.
“How major employers distribute the wealth that their workforce creates has a big impact on people’s living standards.
“We need to give workers more voice on company boards, strengthen trade union rights and enable low- and middle-income earners to get a fairer share in relation to those at the top.”
It comes per week after official figures confirmed that common wages are persevering with to develop behind rises in the price of residing.
The Office for National Statistics (ONS) mentioned common pay development, which excludes bonuses, reached 7.8% over the three months to June in comparison with a yr earlier, however truly dropped by 0.6% as soon as inflation was taken under consideration.
TUC (Trade Union Congress) normal secretary Paul Nowak mentioned: “While millions of families have seen their budgets shredded by the cost-of-living crisis, City directors have enjoyed bumper pay rises.
“This is why workers must be given seats on company boards to inject some much-needed common sense and restraint.
“We need an economy that delivers better living standards for all – not just those at the top.
“But under the Tories, Britain has become a land of grotesque extremes.”
