National Shame: FTSE100 CEO's "Earn" 265 Times More Than A Minimum Wage Worker
Wednesday, 15 August, 2018
UK's Top Bosses 'Earn' 265 Times More Than A Worker On Minimum Wage
A FTSE 100 CEO is now paid an average (median) annual pay of £3.93 million, per year, which is 265 times more than that of a minimum wage worker and 137 times more than a worker on average wage (£28,758).
Analysis by The Equality Trust found the average pay for a FTSE 100 CEO is:
● 123 times more than a nurse earns.
● 103 times more than a teacher earns.
● 96 times more than a police officer earns.
● 224 times more than a care worker earns.
Dr Wanda Wyporska, Executive Director of The Equality Trust, said:
"The UK is already one of the most unequal countries in the developed world and, today, we have seen those at the top of the pay scale pull further away from the rest of us. This is tearing at our social fabric and undermining our social cohesion as the very visible divides between the very rich and the rest of us grow. When we see working people forced to rely on food banks and children suffering from holiday hunger during the summer, this increase in top end pay is obscene and a badge of national shame.
We are pleased to see that the Government is bringing forward legislation on pay ratio reporting, which we have long campaigned for. However, until we break up the ineffective, cosy club that current UK corporate governance arrangements represent, by having workers on Boards and on Remuneration Committees, then this scandal is set to continue."
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 results in poorer mental and physical health, higher violent crime, poorer educational outcomes and lower levels of trust. Inequality affects us all, not just the poorest.
1. According to the CIPD/High Pay Centre calculations, the median pay for a FTSE 100 CEO in 2017 was £3.93 million. Source: http://highpaycentre.org/pubs/high-pay-centre-cipd-executive-pay-survey-2018. To calculate the annual salary of a minimum wage worker works we assume they work 7.5 hours a day at the National Living Wage rate of £7.83 an hour, but do not work on weekends or bank holidays (total of 253 days a year). This would provide an annual salary of £14,857.
2. This refers to the average (median) pay for a nurse, teacher, police officer and care worker in 2017 as detailed in the BBC Salary Checker (using Office for National Statistics figures): https://www.bbc.co.uk/news/business-42094604. The average pay for a nurse is £31,867, for a teacher (secondary school) it is £38,092, for a police officer it is £40,856, and for a care worker it is £17,512.