UK CEOs earn '183 times more'

  • 18/08/2015
Shady image of a manager discussing business matters with her subordinates

The average pay of chief executives in Britain's top companies is 183 times that of the typical worker, according to a new study.

Research among the companies listed on the London stock exchange's FTSE 100 index found that average pay reached £4.96 million (NZ$11.76 million) in 2014.

The figure is 183 times the earnings of average full-time workers, and up from 160 times in 2010 at £4.13 million.

The study by the High Pay Centre think-tank found the 10 highest-paid chief executives received more than 156 million between them last year.

"Pay packages of this size go far beyond what is sensible or necessary to reward and inspire top executives," High Pay Centre director Deborah Hargreaves said on Monday (local time).

"It's more likely that corporate governance structures in the UK are riddled with glaring weaknesses and conflicts of interest."

Since 2013, big companies have been obliged to be more transparent about the earnings of their bosses, who generally receive a base salary, bonuses, stock options and other compensation.

"These reforms didn't do nearly enough to start building a pay culture where everybody is rewarded fairly and proportionally for the work that they do," Hargreaves said.

AFP