Ensure legislation on pay ratios is backed by action to reduce income inequality, says The Equality Trust
Sunday, 10 June, 2018
Commenting on the BEIS announcement on corporate governance and pay ratios, Dr Wanda Wyporska, Executive Director of The Equality Trust said:
“Legislation forcing companies to publish their pay ratios is long overdue, given that a FTSE 100 CEO now earns an average (median) annual pay of £3.45 million , per year, a staggering 242 times more than that of a minimum wage worker.
Publishing pay ratio data will need to be backed by action that sees pay ratios reduced through decreasing excessive executive pay and increasing poverty wages. UK income inequality is among the highest in the developed world and evidence shows that this results in poorer mental and physical health, higher violent crime, poorer educational outcomes and lower levels of trust.
Although this is a welcome first step, if passed, reporting is not due to start until 2020."
The Equality Trust is launching a ranking of the FTSE 100, sector-by-sector, on pay ratios, gender pay gaps, Living Wage commitment and corporate subsidies, so that investors, consumers and workers can make informed choices about where to invest, where to spend and where to work.
Notes for Editors:
1. Analysis by The Equality Trust found the average pay for a FTSE 100 CEO is:
● 108 times more than a nurse’s.
● 91 times more than a teacher’s.
● 84 times more than a police officer’s.
● 197 times more than a care worker’s.
2. Top bosses' pay surpassed the annual salary of a minimum wage worker on Thursday 4th January, 2018.
The Equality Trust is the national charity that campaigns to improve quality of life in the UK by reducing economic and social inequality. The UK is one of the most unequal countries in the developed world and evidence shows that this causes far worse rates of health and social problems than those found in more equal countries, including: poorer mental and physical health, higher violent crime, worse educational outcomes and lower levels of trust. Inequality is not inevitable. Together we can build a society where all can flourish.