By 5pm on the third working day of 2020 (January 6), the average FTSE 100 CEO had already taken home the equivalent of what a typical UK worker makes within a year. The research, which was conducted by the CIPD and think-tank The High Pay Centre, revealed some ‘eye-watering’ statistics about the discrepancy in pay between the average FTSE 100 CEO and that of their workers. According to 2018 data, the average FTSE 100 CEO raked in the equivalent of £901 per hour against the hourly wage of £14.37 for the average full-time employee in the UK.
The figures came as large publicly listed firms with more than 250 UK employees are now required to disclose the ratio between CEO pay and that of their average worker, providing a justification of the discrepancy too. While it can be anticipated that CEOs take home a higher salary than more junior workers, business heads have labelled this level of executive pay “excessive”.
In the first podcast of series two, HR Grapevine’s Online Editor, Sophie Parrott, sits down with Kieran Howells, Deputy Editor at Executive Grapevine, to discuss the new data and delve into some of the topics surrounding high executive pay and pay ratio reporting. The pair take an in-depth look at HR Grapevine’s recent coverage of the news that: the average FTSE 100 bosses rake in £901 an hour. Additionally, the pair discuss the biggest motivators for retaining top talent – and while salary is one of them, it doesn’t take the top spot.
Listen on to find out more.