Just two working days into 2015 and the CEOs of the UK’s biggest companies have already seen more money flow into their bank accounts than the average UK worker will earn for the entire year, according to figures from the High Pay Centre
The think tank says its calculations show that earnings for FTSE 100 CEOs passed the UK average salary of £27,200 by late afternoon on 7 January, which it describes as ‘fat cat Tuesday.’ This is one working day earlier than at the start of 2014.
The High Pay Centre says its analysis is based on data which indicates FTSE 100 CEOs are paid an average of £4.72m. It estimates this is the equivalent of hourly pay of nearly £1,200 assuming a regular 12 hour day, weekend working and only 10 days holiday per year.
While the slary packages paid to FTSE 100 chief executives has risen by nearly £500,000 since last year, the annual pay of the average UK worker increased by £200, from £27,000 to £27,200.
Deborah Hargreaves, High Pay Centre director said: ‘”Fatcat Tuesday” highlights the problem of unfair pay in the UK.
For top bosses to rake in more in two days than their staff earn in a year is clearly unfair, disproportionate and doesn’t make social or economic sense.’
The think tank wants to see further government action to curb top pay levels, including representation for ordinary workers on the company remuneration committees and compulsory publication of the pay gap between the highest and lowest earner within a company.
The EU has already introduced caps on bonuses for City high fliers, a move which was strongly opposed by the government., and has led to a shift towards higher standard pay versus bonuses.
