Executive Excess provides a snapshot of top company directors’ pay and how it compares with that of their own employees in the FTSE 350. It finds that median total earnings for FTSE 100 top directors 100 were £3,195,353, while within the FTSE 250 median earnings for top directors were £1,284,361. It finds that the ratio between top directors’ pay and average employees at their own companies varies hugely, from 1,601:1 at the top to 3:1 at the bottom.
The report provides a variety of data tables, presenting information on top directors’ total earnings and basic salary alongside average employee pay at the FTSE 350, breaking the findings down by sector. The report also includes information on the ratio between top directors’ pay and average employee pay in their own companies and the ratio between top directors’ pay and the pay of a full-time worker on the non-London living wage.
But the report also finds that publicly available information on employees’ pay is woefully inadequate and that it is currently not possible to calculate robust figures for average employee pay from company annual reports. The report therefore calls for standardised mandatory disclosure on employee earnings to be included in annual reports. It also calls for worker representation on remuneration committees to tackle excessive executive pay and help companies take into account employee pay and conditions within their company when setting directors’ pay, as they are required to do by the Corporate Governance Code.
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