What gets measured gets done, according to the adage. As 900 companies in the UK face the prospect of publishing their pay ratio between their Chief Executives and their average British workers, HR Grapevine ask if this will result in restraint in the boardroom, or if what the boss earns should be nobody’s business but theirs.
Corporate excess
Calculations published by the CIPD and the High Pay Centre last week found that pay for leading Chief Executives passed the median UK gross annual salary of £28,758 for full-time employees last Thursday - just three days into the working year. When the pay ratio plans were announced last year, Prime Minister Theresa May described such ‘fat-cat’ bosses as the "unacceptable face of capitalism."
Peter Cheese, the chief executive of the CIPD, said the nation needed a “significant rethink on how and why we reward CEOs,” according to the Guardian. He says bosses pay awards should more widely reflect the impacts of businesses on all stakeholders from employees to society more broadly.
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