Home Business NewsEconomic News This man earns 1,500x more than his workers – should you care?

This man earns 1,500x more than his workers – should you care?

18th Aug 14 9:24 am

FTSE 100 CEOs are typically earning 143 times more than the average worker in their companies, according to new research.

The chasm in pay has increased threefold since 1998, the research from think-tank the High Pay Centre reveals.

The pay gap is widest at FTSE 100 gold mining company Rangold Resources.

Its CEO Mark Bristow, pictured above, received £4.4m last year. That was nearly 1,500 times more than his average employee, who earned £2,968 for the year. Many Rangold employees work at the company’s mining sites in Africa.

WPP came in second for the largest pay gap. CEO Martin Sorrell received £29.8m last year, which was 780 times his average employee’s salary of around £38,265.

The third-biggest pay gap was at Next. CEO Lord Wolfson was paid £4.6m last year – 459 times his average employee’s £10,125. Many of Next’s employees work on the shop floor.

Wolfson would have received more in pay, but he decided not to accept his bonus and instead shared it out among his staff.

In 1998, FTSE 100 CEOs typically earned 47 times more than their average workers – which pales in comparison to today’s 143 times more.

All of this has come among last week’s news that wages including bonuses fell (by 0.2%) for the first time since 2009.

High Pay Centre director Deborah Hargreaves said: “Britain’s executives haven’t got so much better over the past two decades. The only reason why their pay has increased so rapidly compared to their employees is that they are able to get away with it.

“The government needs to take more radical action on top pay to deliver a fair economy that ordinary people can have faith in.”

Do FTSE 100 bosses deserve 143 times more in pay than their workers?

Are their salaries justified, or are they simply unavoidable because of the current market?

What do you think?

Let me know @sophiehobson and in comments below.

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