Monday, 6 January, 2020

The Equality Trust’s analysis shows that the average CEO took home 90 times the salary paid to a senior teacher, 186 times the salary paid to a carer and 212 times the salary earned by a minimum wage worker. Based on figures released by the CIPD and High Pay Centre, the average FTSE 100 CEO was paid £3.46m in 2018, earning the average wage before 5pm on Monday 6th January.

Dr Wanda Wyporska, Executive Director, The Equality Trust commented:

“Although the data show that FTSE 100 CEOs are earning marginally less this year, on average, than last year, the size of this pay inequality, is still dangerously high. As we know from copious research, in countries with such high levels of inequality, such as we see here in the UK, we also see higher levels of mental and physical ill health, obesity, drug and alcohol addiction and lower levels of trust and educational attainment.

“When even the Business Secretary Andrea Leadsom says calls the pay gap "concerning", we must demand greater action on tackling such great gaps in income. The UK Government has committed to reducing inequality, as Sustainable Development Goal number 10. The Equality Trust will be demanding action, as part of global protests, at an event in Westminster on January 18th, along with other Fight Inequality Alliance partners. Around the world, people are taking to the streets because they have had enough of such inequality, watching the rich get richer while they struggle to put food on the table.”

In May 2019, The Equality Trust published, From Pin Money to Fat Cats: Pay Inequality in the FTSE 100, which ranked the companies, sector-by-sector on CEO pay ratios, gender pay and bonus gaps, Living Wage accreditation, worker engagement and other indicators of inequality. A publicly available dashboard and second report are forthcoming in 2020.

Ends

Notes to editors

For interviews or further comment from Dr Wanda Wyporska, please call 07837909418​ or wanda.wyporska@equalitytrust.org.uk

The Equality Trust is the national charity that campaigns to improve quality of life in the UK by reducing economic and social inequality. 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. Inequality affects us all. www.equalitytrust.org.uk

1. Salaries: senior teacher £38, 510, paid carer £18, 563 and 2018 rate minimum wage worker (7.83 per hour x 40 hours a week =313.20 x 52 =£16, 286). This refers to the average (median) pay detailed in the Annual Survey of Hours and Earnings release.

2. The UK Fight Inequality Alliance protest will take place between 12-1 at Richmond Terrace, Westminster on Saturday 18th January, as part of a global week of action coordinated by the Fight Inequality Alliance. https://www.equalitytrust.org.uk/fight-inequality-alliance-uk-and-europe/join-global-protests