Home Business NewsBusiness Britain's boardroom bonanza? Top chief executives see 10% pay rise

Britain's boardroom bonanza? Top chief executives see 10% pay rise

by LLB Editor
10th Jun 13 11:07 am

The chief executives of Britain’s top 100 companies saw their pay increase by 10% over the last year, a study has revealed.

The survey by Manifest and pay consultants MM&K showed that top 100 chief executives were paid a total of £425m in 2012 – £45m more than 2011.

The average package handed to a chief executive of a FTSE 100 firm hit £4.25m. On the other hand, pay rise for the average British worker is at its lowest record since 2001 with workers getting a pay rise of just 1% last year.

The study named Angela Ahrendts, chief executive of British fashion brand Burberry, as the highest paid boss with a £16.9m package. 

The figures sparked outrage among campaigners who said that the pay structure is “completely flawed” and that top bosses receive big cheques for being “in the right place at the right time”.

Deborah Hargreaves, chair of campaign group the High Pay Centre, said, “Executives have seen their rewards racing ahead of the rest of the workforce. Pay for everyone else has been frozen or failed to keep up with inflation. This leads to a great sense of injustice in the workplace.”

Len McCluskey, Unite general secretary said: “These figures show that it’s business as usual for the super rich. Despite a flatlining economy, the bonanza in Britain’s boardrooms continues while demand for food banks rises as working people struggle to make ends meet in the face of pay freezes and below inflation pay rises.

“Soaraway executive pay is one of the scandals of our time. A total of 14% of the nation’s wealth is now concentrated in the hands of just 1% thanks to lottery style salaries.

“It’s unsustainable for the Government to turn a blind eye to unfettered greed. They need to follow the lead of other European countries in clamping down on excessive executive pay.”

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