Bosses vs. Workers: The 120:1 Pay Gap Revealed
*According to the latest findings from the Chartered Institute of Personnel and Development (CIPD) teamed up with the High Pay Centre, a single Thursday in 2018 will see a top boss earning as much as the average full‑time employee racks up in a whole year.
What the Numbers Really Mean
*- Median worker salary: £28,758 (about $38,855)
- Average FTSE 100 CEO pay: €4.5 million – a 17 % drop from 2017, but still mousser than usual.
- Pay ratio: 120:1 – one CEO gets 120 times what one worker gets in a year.
- Highest‑paid chief: Martin Sorrell of advertising firm WPP, pulling in a whopping £48.2 million.
Why the Gap Is Growing… and Shrinking?
*Although the big‑bucks have seen a modest cut thanks to pressure from investors, regulators, and the public’s growing stomach aches, the gap hasn’t yet shrunk to a respectable size.
CIPD’s Peter Cheese: “The decline in 2017 is a win. It shows the board is listening to shareholders, the public, and the Chancellor’s tighter grip on corporate excess.”
New Corporate Governance Code – Say Hello to the Pay Ratios
*Following a government overhaul of the UK Corporate Governance Code, the “Fat Cat Thursday” report says firms must now disclose how much their CEOs are making compared to the average employee.
Stefan Stern of the High Pay Centre: “Publishing these ratios forces boards to face the facts. We’re excited to help companies and the government make this requirement work.”
What the Realists Think About the Derailment
*Luke Hildyard, Stewardship and Corporate Governance Policy Lead at the Pensions and Lifetime Savings Association, notes:
- Only 7 % of FTSE 100 annual reports actually detail the pay gap.
- Large pay disparities reveal that “too many firms can’t see or appreciate the true worth of their workforce.”
Bottom line? The wages of the top brass still dwarf those of ordinary workers, even as the Royal Bank of England’s whistleblowers and Britain’s political leaders try to bring the numbers down to something a bit more reasonable.
